New Rules In Place for Canadian Hostile M&A

The video discusses the nature of transactions, highlighting that most are not executed by takeover bids but through friendly deals. It explores the challenges of financing these bids, especially given the 105-day period they must remain open. The volatility of markets, particularly commodities, adds complexity to securing financing. The video also covers the need for full financing at the outset and the potential risks and interferences that can arise during the takeover process.

What is the primary method by which most transactions are executed?

• Through government intervention

• By a plan of arrangement

• Via stock market purchases

• Through hostile takeover bids

Why is the 105-day period for a bid to stay open considered challenging?

• It is too short for proper planning.

• It is a period of high market stability.

• It is a long time during which market conditions can change significantly.

• It allows for easy access to financing.

What is a key requirement for takeover bids at the outset?

• They must be fully financed.

• They must be partially financed.

• They require no financing.

• They can be financed after approval.

What role do banks play in the takeover bid process?

• They act as mediators between companies.

• They organize the necessary financing.

• They provide legal advice.

• They determine the bid's success.

What might companies do to defend against unwanted takeovers?

• Increase their stock prices

• Muster their defenses

• Merge with another company

• Sell off assets