U.S. Increases Deal Reporting and Foreign Exemption Thresholds

In the United States, the 2006 annual adjustment to reportable transaction thresholds increases the dollar values of exemptions available for transactions involving Canadian and other non-U.S. assets and issuers.

The United States Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act) requires parties to certain mergers and acquisitions, including certain acquisitions of non-U.S. assets and securities, to file pre-merger notifications with the Federal Trade Commission and the Antitrust Division of the Department of Justice and observe a waiting period (usually 30 days) before consummating the transaction. Prior to the current changes, the HSR Act was generally applicable when, as a result of an acquisition, the acquiring person will hold voting securities or assets valued in excess of US$53.1 million ("size of transaction test") and either the acquiring or acquired person has annual net sales or total assets of at least US$106.2 million and the other person has annual net