Canaccord’s management flags regulatory risk to its planned take-private deal

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Canaccord’s management flags regulatory risk to its planned take-private deal
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A group led by Canaccord’s management said there could be ‘no assurance’ that their take-private deal for the financial services firm would be completed

A group led by the management of Canaccord Genuity Group Inc said on Monday there could be “no assurance” that its proposed $1.13-billion take-private deal for the financial services firm would be completed, citing delay in securing regulatory approvals.The move comes months after a special committee of independent directors spurned the $11.25 per share bid for being too low.

The management group had announced the bid in January, looking to take the firm private after concerns that the public markets were undervaluing the company. Several companies have signed go-private deals since last year, spooked by a tough economic environment where stocks have been battered due to rising interest rates.

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