It has now been over two years since Canada's take-over bid
regime was revamped to provide for a minimum 105-day bid
period, a mandatory 50% minimum tender condition and a 10-day
extension once the minimum tender condition has been satisfied.
There were a number of unanswered questions about the new regime
following its adoption. Two key questions were (i) whether the
105-day minimum bid period would have a chilling effect on hostile
bids; and (ii) how would rights plans be treated by securities
regulators under the new regime?
Developments in 2018 may suggest answers to both of these
questions.
Fewer hostile bids?
To date in 2018, there have been only five hostile bids, and
three in all of 2017. Although it's still too early to draw any
definitive conclusions, the number of bids in 2017 and 2018 is
below the average over the past 10 years. While the new 105-day
minimum deposit period may be one factor that accounts for the
decline, other factors may include a
