Poison pill changes may prove tough to swallow

Alex Gorka, Emmanuel Pressman, Donald Gilchrist

Feb 27, 2013

David Parkinson, The Globe and Mail


Canada’s securities regulators are bang-on in wanting to overhaul Canada’s weak hodge-podge of rules for corporate-takeover poison pills. But they should be careful about whose rights they are protecting in the process.


In practice, Canadian companies have largely given up on poison pills as next to useless. In 2011 – a year that saw more than 1,000 mergers and acquisitions in Canada – regulators ruled on a grand total of two poison-pill cases, according to a report from law firm Osler Hoskin & Harcourt LLP.


“Generally speaking, once a Canadian target company is put in play, a change of control transaction is likely to occur,” the Osler report said.

To view the complete Osler report, Developments in Canadian Poison Pill Jurisprudence, written by Donald Gilchrist, Alex Gorka, Emmanuel Pressman and Robert Yalden, click here.

To read the Globe and Mail article, click here.