Canaccord management group providing no assurance that offer will be extended

The management-led group looking to take Canaccord Genuity Group Inc. private says there’s “no reasonable chance” the conditions of the offer will be met by a June 13 deadline.

The group, led by CEO Dan Daviau and chairman David Kassie, said Friday that it hasn’t decided whether or not it will extend its $1.1-billion bid to buy the wealth management and capital markets firm.

Last month, Canaccord warned that an unrelated regulatory issue at one of its subsidiaries meant regulatory approval for the deal likely wouldn’t come before the offer deadline or before financing commitments expire on Aug. 9.

The management group launched its bid to take the firm private in January. Members of a special committee reviewing the bid opposed the offer but later resigned, making way for members more sympathetic to management’s offer.

Canaccord also said in early May that it’s opening up proposals to sell individual parts of the company, which had previously been prohibited as part of the bid.

The management group said Friday that confirmation about whether or not its offer was extended will be announced prior to markets opening on June 14.

Mark Burgess

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Mark was the managing editor of Advisor.ca from 2017 to 2024.