Management and Organizational Studies 1023A/B Lecture Notes - Lecture 8: Takeover, Managerial Finance, Supermajority

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Lecture 8: mergers and acquisitions & international finance. Normal course tender offer is not required as long as no more than 5% of the outstanding shares are purchased through the exchange over a one-year period of time. The allows creeping takeovers where the company acquires the target over a long period of time: securities legislation, critical shareholder percentages. 10% early warning: when a shareholder hits this point a report is sent to osc, this requirement alerts other shareholders that a potential acquisitor is accumulating a position (toehold) in the firm. 50. 1%: control: shareholder controls voting decisions under normal voting (simple majority, can replace board and control management. 66. 7%: amalgamation: can approve amalgamation proposals requiring a 2/3s majority vote (supermajority) Can be initiated by a friendly overture by an acquisitor seeking information that will assist in the valuation process: friendly takeovers, structuring the acquisition.