** The content of this post is contributed by Goodmans LLP of Toronto, Canada. We thank Sheldon Freeman of Goodmans for this contribution.
In Canada, as in the U.S., shareholders are becoming increasingly interested in the use of “appraisal arbitrage” strategies in the context of certain M&A transactions. While the circumstances and motivations for engaging in these strategies are quite similar on both sides of the border, there are numerous structural differences between Canadian and U.S. dissent and appraisal regimes that may affect the implementation of these strategies in Canada. Goodmans LLP, one of Canada’s leading business law firms, recently summarized these differences in “The Use of Appraisal Arbitrage Strategies in Canada in Light of Dell” and points out the key legal issues to consider when engaging in or defending against an exercise of dissent rights.