The New Poster Child for Shareholders’ Remedies

JLL drops Patheon bid, freezes out new suitor

Step asside BCE and Peoples, make way for Patheon v.  JLL!

I must begin by declaring my personal involvement:  I own a modest block of Patheon shares and I find it galling that JLL, the majority shareholder who owns 57% of the outstanding shares, sought to buy out the remaining shares for $2.00 but refuses to sell its shares for $3.50.

But is this really oppressive?  The more I ponder, the less sure I am.   Shouldn’t the keen entrepreneurs at JLL be allowed to make a good faith offer to buy shares at a price that they believe to be a bargain, particulalry when it is at a premium to the current market price?   Is a slim majority interfering with the investment activities of a large minority or is this the bid-and-ask process of the marketplace finding the true market value?  After all, both offers could fall short of the actual market value of this company despite the fact that small blocks of shares can be purchased for $3.00 on the TSX.

About the Author

John Magyar
John J. Magyar, B.A., J.D., Graduate student, University of Western Faculty of Law. John received a B.A. in philosophy from the University of Western Ontario in 1990 and completed the Recorded Music Production program at Fanshawe College in 1993. Before returning to UWO to study Law, he held a wide variety of jobs including Operations Manager at Other Peoples Music Inc and Research Director at Technical Economists Ltd., a commercial real estate consulting service in downtown Toronto. He received a J.D. from UWO in 2010 and is currently working on an LL.M. thesis on statutory interpretation.