June 05, 2015
The two amendments to Canada's takeover bid regime currently proposed by the Canadian Securities Administrators—an extension of the bid response time for target boards and a minimum tender requirement from target shareholders—are drawing a mix of speculation from M&A lawyers for their potential impact on the quality and quantity of takeover activity if enforced. Partner and co-head of Torys' M&A Practice John Emanoilidis presented his perspective in a Lexpert article surveying the pros and cons of these proposed changes. Below is an excerpt of the article.
The CSA wants to extend the minimum period that target boards have to respond from 35 to 120 days, although boards will have the power and flexibility to conclude negotiations in as few as 35 days if they choose.
“I think it is a positive development [that] will significantly reshape the current bid regime,” said John Emanoilidis, a partner with Torys LLP and head of the law firm’s mergers and acquisitions practice in Toronto.
To read the full article, click here.
For more on the new takeover bid regime, see our bulletin, "Canada's New 'Just Say Slow' Takeover Bid Regime".