Bidding game for Equisure heats up

The previously announced bidding process launched by broker network consolidator Equisure Financial Network (TSE:EFN) in search of a parent owner has reached the final level of negotiations.

Equisure recently issued a news announcement stating that shareholders had accepted the creation of a shareholder rights plan allowing for the bidding process to commence. The first stage of the process involved establishing an “independent committee” to evaluate and identify potential bidders — who have since signed confidentiality agreements allowing them access to Equisure’s financial books.

So far “numerous” confidentiality agreements have been signed by interested parties, observes company president George Hutchison. Equisure’s books were kept open to potential bidders until the end of last month. “The process is running well, and I expect a resolution in the near future. I think shareholders will be very happy with the work of the independent committee,” comments Hutchison.

While the ING group is strongly rumored to be the front-runner chasing after Equisure (ING has also made a public statement indicating its intent to make a play for the company), Hutchison says he cannot speculate at this stage to who will be the successful bidder. In fact, contained in the rights plan news announcement, Hutchison notes that, “Equisure had been advised by ING Canada Inc. that ING considers the issuance of right pursuant to the plan and any shares issued from the plan to be subject to a right of first refusal contained in an agreement between ING and Equisure…Equisure’s position having consulted with Equisure’s independent outside counsel is that the clause in question does not apply in respect of rights or shares issued under the shareholders rights plan.” This would seem to suggest that ING does not have “a special place at the table” in the bidding process.

The next news announcement will provide finalization of the bidding, Hutchison states.