Canadian Appraisal Rights

We previously wrote about the Interoil decision, where the Yukon Court of Appeal overturned a decision applying a discounted cash flow analysis to a Canadian appraisal proceeding, holding that the trial court failed to give proper consideration of merger price. Discussion of the Interoil decision has been significant among Canadian and international law firms, including

** 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