Declining Hostile Bids, IPOs And Public Companies

Since the introduction of the May 2016 take-over bid amendments there has been a marked decline in the number of hostile take-over bids in Canada. The following chart sets out the number of hostile bids launched since 2005 to date:

Note: Includes all hostile bids that targeted Canadian-listed public companies from January 1, 2005, to December 16, 2024. Data prior to 2017 drawn from Kingsdale Advisors.

The precise degree to which the 2016 bid amendments have caused this precipitous decline is unclear, but the amendments have likely played a contributing role by increasing the financing costs and market risk associated with launching a bid. More specifically, the 2016 amendments included an extended minimum bid period of 105 days (versus a previous 35 days) and an extension of at least 10 days after the minimum tender condition is satisfied. Take-over bids are required to have financing in place, and lengthier bid periods result in increased financing costs. In