The Ontario Securities Commission has dismissed an appeal by Financial Models Company to overturn a pre-existing shareholder's agreement that favours FMC president and CEO Stamos Katotakis as he competes with French financial IT firm Linedata to assume control of the Canadian investment technology house.
Linedata Services recently raised its offer for FMC to C$166 million. The firm is bidding against a competing C$135 million offer by Katotakis who is using the shareholder's agreement to buy a 42% stake in FMC from fellow shareholders William Waters and BoNY Capital.
In dismissing the challenge to that shareholder's agreement, The Ontario Securities Commission said that no case had been made out that Katotakis and his special purpose funding vehicle 1066821 Ontario Inc. had not complied with securities law or had acted contrary to the public interest.
Two separate judicial challenges to the Katotakis offer have been raised at the Ontario Superior Court by Linedata and BoNY Capital. The court received submission from both parties on Tuesday and is expected to issue a ruling on the case next week.