By James Langton

(November 8 – 17:30 ET) – In a late afternoon conference call with analysts and members of the media, Mackenzie Financial Corp. confirmed that it has adopted a shareholder rights plan in defence of a hostile takeover bid from C.I. Fund Management Inc.

Mackenzie CEO Jim Hunter confirmed that the board has made this move in an effort to buy some time to consider competing bids. Hunter estimated that the plan would provide Mackenzie with about 60 days to consider bids, rather than the 21 days it would otherwise get.

Hunter also confirms that the firm has also hired Merrill Lynch Canada to assist its existing advisors, CIBC World Markets, in its defense. He said that Mackenzie added Merrill to the team because it wants to be “well-represented on a global basis” in soliciting offers. He noted that the firm is looking closely at Europe and the United States for possible buyers.

While he would not identify other possible bidders, or whether the firm has yet received competing offers, Hunter did allow that Mackenzie would be setting up a data room, allowing interested bidders to take a close look at the firm. He allowed that C.I. would be able to participate in this process, providing it agreed to abide by the rules.

Hunter reiterated that C.I.’s current bid is insufficient, saying it considerably undervalues Mackenzie, citing the firm’s innovative product lineup, brand roster, sub-advisory relationships and its MRS subsidiary. While he allowed that the multiple being offered is in line with the price Amvescap plc paid for Trimark Financial Corp. earlier this year, Hunter argued that “Mackenzie is a much different, broader platform than Trimark. This is a broad-based distribution and manufacturing organization.”

The next step for Mackenzie is to look at its options and review expressions of interest. Hunter stressed that maximizing shareholder value would be its guiding principle in any deal. “We are singularly focused on that, and will be diligent in achieving it.”

While Hunter didn’t rule out more radical defense strategies, such as burning up Mackenzie’s cash to thwart C.I., he did say that “in any transaction cash is nice to have”, suggesting that Mackenzie is looking at alternatives other than simply avoiding C.I.