Fundamental Changes To Take-Over Bid Regime One Step Closer With Release Of Draft Amendments

On March 31, 2015, the Canadian Securities Administrators (CSA) released draft amendments to Canada's take over bid regulatory regime. As previously announced by the CSA in September 2014, the amendments will increase the minimum period that a take-over bid must remain open from 35 days to 120 days—unless the target board consents to a shorter period of not less than 35 days or the target enters into a board-supported change of control transaction—and make other changes designed to rebalance the current dynamics between bidders, target boards and target securityholders. The proposed amendments are the first significant changes to the take-over bid regime since 2001, when the minimum period that a take-over bid must remain open was increased from 21 days to 35 days.