M&A Trends of 2005 — Our Top 10 List

Mergers and acquisitions are back! If 2005’s strong resurgence of M&A activity in Canada continues, 2006 M&A activity is likely to be brisk. This is our top 10 list of the trends that emerged last year.

In the last seven years, approximately 70 hostile bids were made in Canada. Yet, in the last four months of 2005 alone, nine hostile bids were launched. Although low interest rates, available cash from private equity firms/hedge funds and a worldwide increase in demand for resources have fuelled the M&A surge generally, these factors alone do not appear to explain the explosion in hostile bids. Other possible factors fuelling this activity are discussed below.

• Regulatory environment is favourable.