Taylor

"Taylor’s investment policy was to seek companies that were prof¬ itable and widely held, but had no single significant (or controlling) shareholder in the company. Wherever possible, Taylor would make Argus the largest single shareholder in targeted companies, in order to obtain a seat, or seats, on the board of directors. In some cases, Argus actually controlled these companies with as little as 5-20 per¬ cent of voting stock in them. Over time, the clear, tough, sensible and profitable direction offered by its nominees to the boards of Argus- held companies earned Argus influence on these boards quite beyond what its shareholdings warranted."

"The scenario was almost perfect for Desmarais. Power could afford to buy Taylor’s Argus stock; Power’s credit was good enough to borrow the cash. Desmarais’s holding in Argus plus Taylor’s 10 percent of voting shares would give him a 20-percent voting position in Argus that would warrant a seat on its board. Further steps for control might include a swap of Power treasury shares for Argus shares at a fancy premium, if Desmarais brought to bear his consid¬ erable persuasiveness and convinced enough voting Argus sharehold¬ ers that such a move was in their best interests. If he couldn’t succeed that way, full debt financing for a simple buyout might be arranged, with the debt settled through a quick sale of some Argus assets."