In its March 2011 issue of Mining Markets, The Northern Miner discusses FAIR Canada’s proposal to require more timely disclosure of information for M&A activity in order to eliminate opportunities for insider trading and create a level playing field in the markets. “Fighting the Insider’s Edge” discusses FAIR Canada’s proposal that Canada should adopt the U.K. Takeover Code’s timely disclosure rules, which require disclosure of impending takeover bids once there is a “firm intention to make an offer” or when a company is in takeover negotiations and trading activity suggests that there has been a leak of confidential information. The articled noted that “A Bloomberg/Measured Markets study, for example, found that unusual trading occurred before 63% of M&A announcements in Canada, vs. 41% in the U.S. in 2006, and 25% in the U.K. in 2005. And a recent Globe and Mail investigation found that in the mining sector, suspicious trading preceded 9 of 14 mining deals looked at in Canada last year – or an eerily similar 64%.”
Click here for a link to our December 2010 newsletter FAIR Canada Calls for Reform of M&A Timely Disclosure Rules.
