A possible foreign purchaser has thrown some lit dynamite into the operations of two companies. News of the possible mergers and acquisitions of these businesses in Canada drove their stock prices up. One of the foreign companies in China tried to derail a deal that was agreed upon to take over an electronics company, but the news had no real bearing. Days before a shareholders' meeting, the company said it would not be acquiring the Canadian-based company.
In the other ongoing case, a United States company is seeking to acquire the assets of a mining company to the tune of $750 million. When that news was released, many investors bid up the shares. The confusion stemmed from what was actually happening. It was not a takeover, but a sale of assets. The trading of those shares has remained closed for the time being.
Transactions involving mergers and acquisitions can be highly complex. Those complexities not only need to be addressed properly and legally, but also need clear understanding. Whether someone is involved in a business startup or acquiring a multi-million dollar company, the experience of legal counsel seasoned in mergers and acquisitions is invaluable.
A lawyer in Canada with mergers and acquisitions savvy can help his or her client to the closing of a successful deal. An attorney will understand the legalities behind these deals and will have the know how to structure a transaction. There are many areas legal counsel might be of great help: takeover bids, spinoffs, acquisition financing and the like.
Source: financialpost.com, "When seemingly too good to be true news from potential foreign acquirers conveys the wrong signals", Barry Critchley, Oct. 11, 2017