What Happens if an M&A Deal is voted Down by Shareholders in Canada?
Hi All,
If an M&A deal is shutdown by shareholders by not receiving the appropriate amount of bids, is there some sort of cooling period for a year? What are the specific rules and laws that apply around a failed M&A transaction?
Do you mean a process where there aren't enough bids? Or in the context of an offer that shareholders vote down?
Shareholder vote down
Not a lawyer and been a while since I worked on a public deal, but will take a stab.
I don't think there is a cooling off period. Under Canadian rules, if there is an unsolicited takeover bid, the target board has 15 days from the bid date to send a circular to shareholders with a recommendation and/or reasons if there isn't a recommendation. Hypothetically, I would think if an unsolicited bid came in, for example, right after shareholders turned down an offer, the board would still have to follow that process.
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