For Immediate Release
March 2, 2015
The Information Technology Association of Canada Supports New CSA Rules
Toronto, ON – With the recent announcement by the Canadian Securities Administrators (CSA), the Information Technology Association of Canada (ITAC) is voicing their support of the 105- day waiting period required for hostile bidders compared to the current 35-day waiting period as the industry fought hard over the years to put this recommendation forward on behalf of the ICT sector in Canada.
ITAC is fundamentally a free-market organization but recognizes that securities regulations need to better equip Canadian executives and Boards from hostile takeover with no ability to mount a reasonable defense. This extension in the waiting period gives the company more time to review all possible alternatives. ITAC’s position is detailed in an earlier White Paper The Issue: Building Stronger Tech Companies in Canada.
“Many technology companies with aspirations to grow into a global enterprise can have their growth trajectory halted against their will,” commented Harry Zarek, President, Compugen Inc. “Having an extended waiting period gives companies more flexibility to build protection.”
“Canada needs to become more in line with the US and this is the first step,” noted Karna Gupta, President and CEO, ITAC. “US companies facing acquisition have sufficient defense mechanisms to stop a hostile takeover. The intent is not to be anti-take-over but we believe the CSA ruling provides the companies an opportunity to secure the best option for their shareholders.”
As Canada’s national ICT business association, ITAC champions the development of a robust, innovative and sustainable digital economy in Canada. More than 33,500 Canadian ICT firms create and supply goods and services that contribute to a more productive, competitive and innovative society. The ICT sector generates one million jobs directly and indirectly and invests $4.8 billion in private sector R&D, more than any other sector in Canada.