Financial Post Quotes John Emanoilidis on the Use of Contingent Value Rights in M&A Transactions

December 21, 2015

An article spotlighting the use of two share pricing tools—contingent value rights (CVRs) and warrants—that have emerged within two current takeover bids references Torys’ M&A Trends 2014 piece, “Contingent Value Rights and Similar Tools Are Becoming More Commonplace”, written by John Emanoilidis, Mile Kurta and Thomas H. Yeo. Below is an excerpt of the Financial Post article.

In a recent paper, John Emanoilidis, a partner at Torys, said contingent value rights “give target shareholders a right to receive additional consideration if a specified milestone or threshold is achieved in the future.”

CVRs have become fairly common in the pharmaceutical sector when the future “value of a particular drug is highly uncertain and contingent on events such as regulatory approval or the outcome of a clinical trial,” Emanoilidis said.

To read the full article, click here.


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