Mergers & Acquisitions: The Pace Of An Ever Changing Environment

2006 was another record-breaking year for mergers and acquisitions activity in Canada. By the end of the year, the dollar value of all announced transactions was Cdn$296.5 billion, almost twice the Cdn$151.3 billion of activity for 2005. It has been a banner year in the U.S. as well, with announced deals having a value in excess of US$1.6 trillion.

The increased level of activity has led to a number of interesting developments in public-market M&A as bidders, targets and shareholders look for new and innovative ways to protect their interests and put their own stamp on significant transactions. These key developments include:

• An unsuccessful challenge to the ability of an acquiring company to complete a proposed acquisition without shareholder approval, despite significant share dilution.