Change to Takeover Rules Introduced

Rules that allow shareholders more time to consider takeover bids were introduced by Environment and Labour Minister David Morse in the House of Assembly today.

Mr. Morse, whose responsibilities also include overseeing the Nova Scotia Securities Commission, announced the improvements as part of several changes to securities legislation.

"These rules are designed to ensure fairness in the process and, in particular, to provide more time for shareholders to consider the details of a takeover bid," he said.

The changes will extend the time a shareholder has to consider a bid to 35 days from 21 days. They also extend the deadline for payment of securities resulting from a takeover bid from three days to three business days after the take-up. The time in which an initial directors'' circular must be delivered is extended to 15 days from 10 days after the date of the takeover bid.

These amendments bring Nova Scotia into line with most other provinces who have already passed these changes or are in the process of doing so. They are based on recommendations of a committee appointed by the Investment Dealers Association of Canada. The committee is known as the Zimmerman Committee after its chair.

Mr. Morse said it is important that Nova Scotia investors have the same protection afforded to residents of other provinces.

Another change introduced will allow the Securities Commission to make rules allowing for more flexible distribution channels while at the same time ensuring investor protection. This will fulfil a government commitment to reduce red tape and allow the market to operate more freely.

The bill also clarifies that the commission may exchange information with other law enforcement agencies, regulatory agencies and technology service providers. This will permit the commission to better fulfil its investor protection mandate by recognizing that securities markets are not confined by provincial borders.