Source: The Canadian Press

The CPP Investment Board says it will continue to battle against Magna International Inc. (TSX:MG.A) in court if the auto parts giant gets shareholder approval for a $1.1-billion deal with founder Frank Stronach.

The pension fund manager says it intends to oppose the transaction at the Ontario Superior Court, if it holds a routine fairness hearing on the matter following Friday’s shareholder vote.

The CPPIB will vote against the proposal but doesn’t have enough shares in the Ontario-based company to sway the decision by itself.

Magna’s management is proposing to compensate Stronach and his family trust for linquishing their voting control of the publicly traded company.

Under the plan, Stronach would receive US$300 million in cash, $120 million in consulting fees over the next four years, nine-million single-vote shares of Magna and control over a new joint venture focused on electric vehicles.

A number of Canadian pension managers, including CPPIB, have objected to the large premium that Stronach will receive for his multiple-vote B shares.

The vote had been originally scheduled for June 28 but was postponed to July 23 after the Ontario Securities Commission ruled that Magna management hadn’t provided enough information to shareholders.