Canadian securities regulators release new corporate takeover rules

TORONTO – The Canadian Securities Administrators are extending the time target companies have to find alternatives under new rules for corporate takeover bids.

The regulators say the changes will help shareholders and give boards more time when responding to a takeover bid.

The final amendments include a requirement for a minimum deposit period of 105 days, subject to certain exceptions.

The period will also be subject to an extension of at least 10 days after the minimum tender requirement and all other conditions are met.

The changes also require that bids meet a minimum tender condition of more than half of the securities held by the target company’s stockholders — not counting the bidder and its allies.

Under the current rules, non-exempt takeover bids must remain open for 35 days and are not subject to any minimum tender requirement or an extension requirement.

“The new regime will enhance the ability of the security holders to make voluntary, informed and co-ordinated tender decisions while providing boards with additional time and discretion when responding to a takeover bid,” Louis Morisset, chairman of the CSA and president and chief executive of the Autorite des marches financiers, said in a statement.