March 02, 2016
Partner and co-head of the firm’s M&A Practice John Emanoilidis has offered his insight on changing deal dynamics under Canada’s new 105-day takeover bid period—one part of Canadian regulators’ new proposed takeover bid regime—in an article for Reuters. Below is an excerpt of the article.
The existing regime does allow targets to buy time and extend the time period around hostile bids through the use of shareholder rights plans, or so-called poison pills. But lawyers have said the new rules could put a damper on hostile activity in the country, especially given that the majority of publicly listed companies in Canada are mining and energy companies, whose share prices fluctuate sharply with rapid moves in commodity markets.
“It will make hostile deals a little harder for sure," said John Emanoilidis, co-head of law firm Torys’ M&A practice. "This will motivate bidders to try to do a friendly deal, because with a friendly deal comes a shorter time period.”
Read the full article here.
Read our full analysis of regulators’ new 105-day takeover bid period and enhanced early warning rules here.