The board of directors of Clarington Corp. today said it doesn’t consider CI Financial’s proposed offer to acquire Clarington to be a “competing transaction” to a bid from Industrial Alliance Insurance and Financial Services Inc.

Industrial Alliance is offering $14.25 a share for Clarington.

CI has pledged to cut MERs for Clarington unitholders if its bid of $14.75 a share succeeds.

In a release, Clarington said the conditions of the CI offer “include a request for lock-up agreements from Clarington shareholders in form and substance satisfactory to CI in respect of an unspecified number of shares and shareholders, as well as retention, non-solicitation and non-competition covenants in form and substance satisfactory to CI in respect of senior executives on unspecified terms.”

As a result, Clarington’s board “does not presently consider this non-binding, highly conditional proposal to be a competing transaction under its Support Agreement with Industrial Alliance.”

Clarington’s board reiterated that it remains prepared to fulfil its responsibilities in accordance with the Industrial Alliance support agreement and applicable law should it receive a competing transaction.