Magna - The OSC Decision

The proposed reorganization of the share capital of Magna International Inc. – which would result in the collapse of Magna's dual class capital structure – has attracted significant attention due to, among other things, the profile of the parties, the premium proposed to be paid to Frank Stronach and related entities to collapse a share structure that many institutional shareholders have found objectionable, and the possible implications of the transaction as a precedent for other Canadian issuers with similar structures.

On June 24, 2010, the Ontario Securities Commission (the "OSC") released its decision (with reasons to follow) in connection with an application by Staff of the OSC to, among other things, cease trade the transaction on the basis that it was in the "public interest" to do so as a result of what Staff believed was insufficient disclosure and flaws in the process followed by the Magna board of directors.