Management and Organizational Studies 1023A/B Chapter Notes -Canada Business Corporations Act, Takeover, Tender Offer

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

Document Summary

Takeover the transfer of control from one ownership group to another. Acquisition the purchase of one firm (target firm) by another (acquiring firm or bidder: the acquiring firm keeps its identity while the acquired firm disappears. Merger the combination of two firms into a new legal entity: some mergers run into issues over the merge equals (suits) Most acquisitions are made through a cash transaction the receipt of cash for shares by shareholders in a target company. When one company acquires another, the approval of the target company"s shareholders is required since they have to agree to sell their shares. Amalgamation a merger where both sets of shareholders are required to approve the transaction. Under canada business corporations act (cbca), 21 days" notice is given for a meeting where shareholders have to vote. Two-thirds of the shareholders have to approve.