Canadian regulators said they are concerned about bans some companies have imposed on the resale of their shares to activist investors.
“While we do not generally comment on any specific issuer or practice, we are concerned about extraordinary actions by issuers that may deter or hinder shareholder activism that is otherwise compliant with corporate and securities laws,” Naizam Kanji, director of the mergers and acquisitions office at the Ontario Securities Commission, said in an e-mail.
The regulator was responding to a Bloomberg News story on Monday showing that Canadian drugmaker Concordia Healthcare Corp., which had sold a 14 percent stake to private-equity firm Cinven this year, had banned the transfer or resale of those shares to a list of almost 60 activist firms…
SCOTT DEVEAU AND MILES WEISS – Globe and Mail – Nov. 17, 2015.
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