On August 25, 2009, the Alberta Securities Commission dismissed an application by TransAlta Corporation to cease trade the shareholder rights plan of Canadian Hydro Developers Inc. The TransAlta take-over bid for Canadian Hydro Developers was scheduled to expire, unless extended, on August 27, 2009 and was effectively blocked by the rights plan. Although the impact of this decision will not be clear until the ASC releases its written reasons, it may be further evidence of a shift by the Canadian securities regulators towards providing boards of directors with greater deference in resisting unsolicited take-over bids.
Shareholder Rights Plans
Shareholder rights . . . [more]