The 156 Day Pill – When, Not If It Should Go

One of Canada's leading securities regulators, the British Columbia Securities Commission (BCSC), defended the unusually long shelf life it accorded to a poison pill in the face of a hostile take-over bid with the release of reasons supporting its decision in early May to allow Augusta Resource Corporation (Augusta) to leave its shareholder rights plan in place in the face of the HudBay Minerals Inc. (HudBay) hostile bid for a total of 156 days. The BCSC's reasons were issued on June 27, 2014.

The panel was influenced primarily by the results of the Augusta shareholder vote held on May 2, 2014, which overwhelming supported management's decision to leave the Augusta rights plan in place in face of the HudBay bid. The panel also concluded that it was reasonably likely that HudBay would extend its bid if the panel fixed a future "date certain" for the termination of the Augusta rights plan.