Higher Valuations May Lead to More Activist Activity

The video discusses the rise in proxy contests due to activist investors and how companies are settling disputes quickly to avoid costs. Brad Freeland explains that hostile bids occur at high or low valuations, with the mining sector being a focal point. The video covers board-related and transactional proxy contests, noting that shareholders are better prepared now. It also touches on hostile private takeovers and new defensive tactics like private placements.

What conditions often lead to hostile bids?

• Technological advancements

• Government regulations

• High or low valuations

• Stable market conditions

Which sector has seen the most activity in hostile bids?

• Retail

• Mining

• Healthcare

• Technology

What type of proxy contests are more common currently?

• Shareholder-related contests

• Transaction-related contests

• Board-related contests

• Market-related contests

What has contributed to shareholders being more prepared for proxy battles?

• Maturity within the market

• Increased market volatility

• Technological advancements

• Government intervention

What sparked the interest in studying proxy contests in Canada?

• Technological advancements

• A major economic downturn

• The involvement in CP

• New government policies

What has replaced shareholder rights plans as a defensive tactic?

• Defensive private placements

• Government regulations

• Technological advancements

• Increased shareholder meetings

What do commissions evaluate to determine if a private placement is a defensive tactic?

• Technological advancements

• Management's intentions before the bid

• Market conditions

• Shareholder opinions