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.