Just a couple of hours after his proxy bid to take over the pharmaceutical company he started fell far short of the mark, Melnyk held a news conference to announce he is launching his own new drug company, to be called Trimel Pharmaceuticals.
Before yesterday's annual general meeting began, Melnyk tried to postpone the confrontation over control of the company by withdrawing his proxy votes for his own slate of candidates. That would leave the meeting without a quorum and force postponement of any vote.
But, in anticipation of that possibility, the Biovail board had passed a bylaw a few minutes earlier, allowing it to proceed with a reduced number of shareholders constituting a quorum.
Melnyk called that "dirty pool" at his press conference.
"This is a ghastly case of breaking every corporate governance rule in the book," said the owner of the Ottawa Senators and the Mississauga St. Michael's Majors. He announced he will go to court to try to overturn the results of the meeting.
With Melynk's candidates for the board of directors withdrawn, the current board's slate received 98 per cent backing.
Biovail's leaders said Melnyk's takeover bid would have been defeated overwhelmingly under any circumstances.
"This last, desperate bid ploy of Melnyk's to thwart the will of the shareholders really is unconscionable," Biovail CEO Bill Wells told reporters after the meeting.
Douglas Squires, chair of the board said the results endorse "an overwhelming mandate for change for Biovail, which is desperately needed and has been needed for years."
Melnyk, meantime, said he will start anew in the drug business if his legal challenge fails.
"If nothing changes, this is the start of Trimel Pharmaceuticals," he said.
jstewart@mississauga.net
