UPDATE 1-Melnyk used private info in bid to stop meeting-Biovail

TORONTO, July 8 (Reuters) - Biovail Corp's (BVF.TO: ) lawyers said in court on Tuesday that founder Eugene Melnyk used confidential information provided under a prearranged protocol agreement to try to "scuttle" its annual meeting. Melnyk, who served at the company in various positions for 20 years including chairman, took the Canadian drugmaker to court, arguing the meeting was improperly held because it lacked a quorum. The millionaire owner of the Ottawa Senators hockey team had pulled his own block of about 18.8 million shares, apparently to stop the June 25 meeting. The company said Melnyk was playing for more time to build support for an independent slate of directors in a challenge to management. But just minutes before the meeting began, the company instead changed its obligatory 51 percent shareholder representation... [read full story]