Tread carefully

Author: | Published: 1 Apr 2007

Recent actions by the Ontario Securities Commission (OSC) in connection with the acquisition of AiT Advanced Information Technologies by 3M Canada are raising concerns in Canadian public M&A. The unexpected actions against AiT over the disclosure of its proposed merger is forcing everyone to tread carefully.

On February 8 2007, the OSC commenced proceedings against AiT and two of its directors for failure to make timely disclosure of its proposed transaction with 3M. Two weeks later, on February 19, AiT and one of these directors entered into settlement agreements with the OSC. The hearing for the remaining director has been set for July 9.

The chronology of events set out in the OSC's statement of allegations is generally consistent with the agreed statement of facts set out in the settlement agreements.

On January 25 2002, a committee of the AiT board accepted management's recommendation that AiT consider finding...