Canadian bid does F&C shareholders a favour 28 Jan 2014 The venerable London fund manager saw assets fall for two years running. Its shares have traded well below peers’ and it is relatively small. There are some recent brighter signs. But investors will find it easy to accept a 708 mln stg takeover offer from BMO, the Montreal bank.
Gold’s would-be king attempts Midas deal touch 13 Jan 2014 Canada’s Goldcorp is stalking Osisko in a bid that could push it past Barrick as the world’s biggest miner of the yellow metal by market value. The C$2.6 bln price looks high, but Goldcorp is using its own richly valued shares. It’s a solid gold move against stumbling rivals.
Australia nudges dairy saga toward a finish 17 Dec 2013 Saputo has raised its offer for cheesemaker Warrnambool to A$537 million, at a regulator’s prompting. It could prove higher than a rival bid by Murray Goulburn, and looks more deliverable. Barring a knockout counterbid, investors would do well to take Saputo’s cash.
Canadian economy far from loony 2 Dec 2013 GDP expanded at a 2.7 pct rate in Q3, while stocks are up 8 pct in 2013. Housing may be set for a downturn and softer commodity prices don’t help. But its well-run banking system and moderate money supply growth mean Canada remains better crisis-proofed than most big economies.
Icahn’s Talisman revamp may not bring fortune 2 Dec 2013 The activist has won two board seats at the Canadian energy firm. But it was already clear that the $12 bln company needed to sell assets. With BP, Apache and Conoco also offloading wells, the problem is not so much the strategy as whether it can add value in a buyer’s market.
Proponent is odd part of $27 bln Canadian oil plan 26 Nov 2013 A west coast refinery to process domestic crude into products for Asia makes decent sense. What’s headline-grabbing is that the idea comes from David Black, a newspaper mogul, not from an energy specialist. Despite hints of Chinese financing, that makes the proposal seem flaky.
BlackBerry turnaround starts out all thumbs 11 Nov 2013 New boss John Chen is being paid $3 mln annually plus shares worth $85 mln over five years. The stock at least provides the right incentives. But the struggling Canadian company needs more attention than one man doing both top jobs, especially if he’s commuting from California.
Canadian driller bares false economy of cheap gas 5 Nov 2013 Struggling Encana is slashing its workforce, capital spending and dividend. Such cutbacks, welcomed by investors, probably will make gas prices more volatile. The situation should pique the interest of policymakers who have been slow to embrace North American exports.
Lenovo-BlackBerry bid could squish under pressure 18 Oct 2013 The Canadian handset maker’s patents and brand name could help the ambitious Chinese tech group sell phones in the West. But Lenovo will need a partner to take the BlackBerry bits it can’t keep. Investors would have to discount an offer for execution risk, and political meddling.
BlackBerry shares finally find bottom of sorts 23 Sep 2013 Backer Fairfax has made a $4.7 bln buyout offer for the beleaguered smartphone maker. That might be justified by the company’s $2.6 bln of cash plus the market value of its IP. But a meltdown in demand for its phones makes the case for a successful turnaround a fragile one.
BlackBerry washout leaves a white-collar stain 23 Sep 2013 The original smartphone arrived at the dawn of the new millennium as the gadget of choice for a mobile Wall Street class. This spawned an aspirational boom among consumers. Fittingly, its demise is occurring with the BlackBerry as a symbol of the professionally indentured.
Latin America has more to fear than Fed itself 16 Sep 2013 Declining growth rates present the worst contagion problem. An interactive Breakingviews analysis suggests Venezuela and Brazil are most vulnerable, with Mexico and Argentina less so. The region’s politics and more homogenous profile than Asia leave it exposed in other ways.
Neiman owners exit with a touch of buyer’s remorse 9 Sep 2013 A group led by TPG and Warburg Pincus is selling the luxury retailer for $6.1 bln, or an eight-year IRR of about 15 pct. That’s not bad having endured the crisis, aided by newfangled PIK-toggles. Still, like owning, say, a $75,000 Neiman yurt, it’s less exciting than first hoped.
Canadian bank shopping south of border paying off 30 Aug 2013 During the financial crisis, and at a time when Canada’s economy and housing market remained stable, some of the country’s big banks rolled the dice on a U.S. recovery. Among them, TD and BMO are reaping the fruits of their expansion just as things at home look decidedly wobbly.
BHP could be long-term winner in potash 6 Aug 2013 The end of a cartel complicates BHP’s decision about building a big Canadian potash mine. It should press on. The project will make BHP the low-cost producer in a strategic industry. Weak prices might hurt for a while, but should eventually reduce a destabilising supply surplus.
Defence fees at Severn Trent are hard to defend 17 Jul 2013 The British water utility paid its advisers 19 mln pounds for help thwarting a takeover. Severn’s board got what it wanted. But the payout looks generous. How much work does a four-week tussle in a regulated sector, with no formal bid, really require?
Canada’s Weston family bags decent drug deal 15 Jul 2013 Their grocery chain, Loblaw, is buying Shoppers Drug Mart for C$12.4 bln in cash and stock. It’s a smart defense against big-box retailers like Wal-Mart and Target. And though the premium is rich relative to synergies, the deal overall promises to deliver an acceptable return.
New energy map underpins $20 bln Petronas gas punt 12 Jun 2013 The U.S. is buying less gas from Canada. That’s an opportunity for the Malaysian giant, which is running low on product at home, to sell its new Canadian supplies in Asia for more money. The costly plan is a sign the upheaval wrought by fracking and the like is going global.
Bidders’ drip-drip approach sunk Severn Trent deal 12 Jun 2013 The 5.3 bln pound purchase of the British water company is dead. The bidders, LongRiver, say Severn was too cold about a takeover. But they were too rigid on price. The board did the right thing. Starting serious talks without a strong offer is a poor defence strategy.
Outcomes diverge in Severn Trent spat 10 Jun 2013 The UK utility rightly snubbed a third approach at 5.3 bln stg after suitor LongRiver added a small sweetener. Its shares are pricing in a higher chance of deal failure. While LongRiver’s hardball tactics are risky, an agreement is possible. A compromise on dividends could help.