May 10, 2016
On May 9, long-unfolding amendments to Canada’s takeover rules take effect, shaking up the current bid regime while establishing a common set of rules across all jurisdictions. A special report co-released by Mergermarket and Citibank Canada on this new direction features comments from partner and co-head of Torys’ M&A Practice, John Emanoilidis. John shares his perspective on the key elements of the new rules including the extended takeover bid period, minimum tender requirement—and the rules’ potential effect on the pace of Canadian M&A activity.
Below is an excerpt of the article. For a comprehensive look at Canadian takeovers and U.S. tender offers, read our newly released business law guide, Takeover Bids in Canada and Tender Offers in the United States.
MM: Where do the changes shift the balance of power between targets and acquirers? Do you think that balance is correct in comparison with other jurisdictions?
JE: In my view, the new take-over bid regime strikes the appropriate balance by giving target boards more effective leverage to deal with the hostile bidder, and greater scope through the benefit of additional time to respond to an unsolicited approach, while ultimately preserving the right for shareholders to collectively decide the outcome of a bid within a predictable time period.
To read a PDF of the full article, click here.