CA Magazine, April 1st, 2008
Many people are worried about Canadian companies being bought up by foreign interests. The real problem, however, lies in the vulnerability of Canada's publicly traded companies to hostile takeovers during inevitable rough patches.
The stock market is dominated by short-term investors who do not feel a shred of responsibility toward the companies in which they invest. At the first sign of weakness, they will abandon a struggling company, exposing it to hostile takeovers.
Even worse news for companies is that, at the mere hint of a hostile takeover bid, arbitrageurs take large positions in th...
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