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 necessity of having financing arranged 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?

• Via government intervention

• By friendly deals

• Through public auctions

• Through hostile takeover bids

Why is a 105-day period challenging for financing a takeover bid?

• The market can change significantly in that time

• Companies cannot plan for such a long period

• It is not enough time to gather necessary approvals

• It is too short for banks to process loans

What must be arranged at the outset of a takeover bid?

• A marketing campaign

• Full bank financing

• Employee training

• Legal consultations

What might interlopers do during a takeover bid?

• Negotiate with banks

• Provide additional financing

• Disrupt the process

• Support the bid

What can target companies do in response to a takeover bid?

• Immediately accept the offer

• Muster their defenses

• Seek government intervention

• Ignore the bid