Shareholder opposition poses a threat to Sunoco's proposed acquisition of Parkland, largely due to the requirement for two-thirds shareholder approval under Canadian law. Key stakeholders such as Simpson Oil, activist investor Engine Capital and proxy advisors ISS and Glass Lewis have all signaled resistance to the deal with Simpson Oil pushing to delay major corporate actions until new directors are seated, emphasizing dissatisfaction with the current board and the timing of the merger.
In a recentCTFNarticle, Ele Klein, Schulte's co-chair of the Global Shareholder Activism Group, underscored the serious challenge the deal faces, given the growing activist momentum against it and strategic advantage the opposition holds. He stated that Simpson's resistance — especially if supported by other shareholders — gives the dissenting group "tremendous leverage" over the proposed merger.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
