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Canaccord Genuity Group Inc. is warning investors that approval for its management team’s bid to take the firm private could be delayed because of an unrelated regulatory issue at a subsidiary.

“[D]ue to an ongoing regulatory matter involving one of the company’s foreign subsidiaries, regulatory approval for the change in control contemplated by the management offer will not be granted on an expedited basis,” Canaccord said in a release on Monday.

Based on discussions with the regulator, the firm said approval likely won’t come in time to complete the offer before the June 13 expiry date or before financing commitments expire on Aug. 9.

Canaccord didn’t specify the nature of the regulatory issue or which foreign subsidiary is affected. The issue arose in its capital markets business, it said, and is not related to management’s offer.

The management group that includes CEO Dan Daviau and chairman David Kassie launched its $1.1-billion 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 Monday 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 was critical of a review by RBC Dominion Securities Inc. that used a “sum of the parts” methodology, valuing each business segment individually. The group argued the company was worth more as a block than selling off individual business segments.

“The special committee is continuing its assessment of the management offer and third-party alternatives,” Canaccord said on Monday. “While there is no current intention to propose the sale of any material asset of the company, the special committee is continuing its work and will provide further updates, as appropriate.”

Canaccord said the management team would file a notice of variation reflecting the change this week.

Regarding the regulatory issue that risks undoing the deal, Canaccord said the subsidiary has made “significant enhancements to its compliance functions and significant investments in additional staff and technology,” and expects the issue to be resolved “in the ordinary course.”