Torys' Top 10 Trends For 2007.

Mondaq Business BriefingNbr. 2007, January 2007

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Summary


Mergers and acquisitions regulations

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Extract


Torys' Top 10 Trends For 2007.

Merger and acquisition activity during 2006 continued at record levels, and no end is in sight. We are in the midst of a "perfect storm" of circumstances that could cause a huge movement of large public companies out of the hands of public shareholders and into the hands of private equity and institutions.

The impetus for this shift is being fuelled by cash-rich private equity funds; the emergence of clubs that enable these funds to do much bigger deals; the growing unfriendliness of the regulatory environment for public companies; and the pressure for short-term earnings growth.

What are the implications of this movement for the economy, for regulators and for acquirors, targets and investors?

Going-Private Transactions Will Increase

Sarbanes-Oxley Will Spur M&A Activity and Result in the Increased Importance of Non-U.S. Stock Exchanges

Income Trust M&A Will Grow

Defensive Tactics Will Proliferate and Strengthen

Private Equity Club Transactions Will Continue to Increase

Shareholder Activism Will Strengthen

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