A general question about regulatory requirements, but maybe using TCN as an example as it is now in play....... When a company like Blackstone makes a offer for a company like TCN, once the offer is in place, is the acquirer (Blackstone) permitted to continue to buy stock offered in the market up to 100% even before the vote?
Just seems there is a lot of selling and buying and wondering that would be smart of Blackstone.
Thanks
Stuart
Generally (all the times we have seen) in a friendly takeover (which TCN is) there is a standstill agreement between parties that does not allow for the buyer to keep accumulating shares. In a non-friendly takeover proposal, though there is no agreement, and standard rules apply. In Canada, this means a company that acquires 10% of another has to disclose it, and after that point and between 10% and 20% any trading that changes the position by 2% or more also has to be disclosed. At 20%, a company is seen to be having an influence, and new rules apply that can restrict further buying in some cases, or without proper notice to shareholders. So, with TCN, it is highly unlikely Blackstone is buying. But there are alway selling shareholders who want their quick profit, and always arbitrage traders, looking for an 'easy' 1.7% to the closing acquisition price, or hoping for a higher bid. Takeover companies typically do trade in high volume.