April 27, 2015
In an article discussing hostile takeovers in The Deal Room, Torys’ Capital Markets Counsel Thomas Yeo offers insight into how companies can prepare themselves for such an event. As a highly experienced M&A adviser, Thomas recommends that companies monitor their external environment for potential threats and opportunities, and establish processes to manage hostile takeover bids as a matter of good corporate practice. Below is an excerpt of the article.
In addition to the shareholder rights plan, Yeo recommends companies create a written manual or detailed processes for responding to a hostile takeover.
“That will go over all sorts of things, from basic stuff like contact information for the lawyers and financial advisors, to thinking about and outlining who would form a special committee of directors,” says Yeo. “Go through and think about what potential transactions you can do in the face of a hostile bid.”