Canaccord Genuity management group walks away from buyout offer

financialpost.com:

TORONTO — Canaccord Genuity Group Inc. says a proposed management buyout of the firm will not go ahead after key conditions of the offer, including required regulatory approvals, were not received by the offer’s expiry time.

The financial services firm says the management group decided not to extend the offer beyond a June 13 deadline.

The company says as a result no shares were acquired under the offer.

The Canaccord board of directors recommended last week that shareholders reject the proposal as the conditions of the bid were not expected to be satisfied at or before the deadline.

The company warned last month that a regulatory issue with one of its foreign subsidiaries could hold up the deal and that it was unlikely to receive approval for the buyout in time.

The management group included chief executive Daniel Daviau and chairman David Kassie as well as all the members of the company’s global operating committee and additional senior and tenured employees from across its business.