Proposed Changes To Take-Over Rules Aim To Level Playing Field Among Boards And Bidders

Yesterday, the Canadian Securities Administrators published their eagerly anticipated proposed amendments to the Canadian take-over bid regime (the Proposed Amendments). Specifically, the Proposed Amendments will result in changes to the current rules governing take-over bids by extending the mandatory minimum deposit period and adding mechanisms to address the perceived coercive features of the current rules. The rules surrounding issuer bids will remain unchanged.

The stated objectives of the Proposed Amendments include the facilitation of shareholders' ability to make voluntary, informed, and coordinated tender decisions while providing target boards with additional time to respond and seek out value-maximizing alternatives. The Proposed Amendments aim to achieve these objectives primarily through the following changes: