March 02, 2016
The Financial Post, in an article on ongoing developments in Canada’s takeover bid regime, has referenced Torys’ latest bulletin on the topic, “Canadian Regulators Adopt 105-Day Minimum Bid Period and Enhance Early Warning Rules,” written by partner and co-head of our M&A Practice John Emanoilidis and counsel Sophia Tolias. Below is an excerpt of the article.
Lawyers at Torys LLP suggest the new rules might actually encourage greater cooperation between bidders and target boards. The longer 105-day period generates uncertainty for hostile bidders because it makes it easier for an interloper to thwart the bid, and that gives target boards negotiating leverage, the Torys lawyers write. "We anticipate that hostile bidders will perceive the benefit of engaging more with target boards who will have the ability to reduce the minimum tender period for friendly transactions."
Read the full article here.
Read our full analysis of regulators’ new 105-day takeover bid period and enhanced early warning rules here.