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The Globe and Mail mentions Fasken Martineau’s hostile takeover study in an article on the Chemtrade/Canexus bid

Fasken
Reading Time 1 minute read
“An easy way to make a hostile bid friendlier” by Andrew Willis, Globe and Mail

The Globe and Mail mentions Fasken Martineau’s study of 140 Canadian hostile takeovers in an article examining the Chemtrade attempt striking a deal with Calgary-based Canexus.

Law firm Fasken Martineau published a study last year of 140 Canadian hostile offers over the past decade, and found that 55 per cent of bids were eventually successful.

Fasken's study found successful hostile takeovers featured a number of common traits. There were cash bids - Chemtrade's offer checks that box. However, the bid falls short on other key elements.

Successful hostile bids tend to feature an offer made at a 30per-cent-plus premium to where the target company's stock was trading prior to the bid, according to Fasken's research. Paying up for a target translated into a 75-per-cent success rate on the takeover.