Canuck railroad could gain from dose of Ackman 11 Jan 2012 A key measure of productivity puts Canadian Pacific dead last among North America’s big six railways. Even if a proxy fight being waged by Ackman’s Pershing Square fund isn’t successful, it could inject some healthy ambition in the company’s turnaround plan.
Frackers need to get ahead of the regulatory curve 12 Dec 2011 A report linking hydraulic fracturing to polluted drinking water is a significant setback for U.S. shale gas. Fracking’s economic benefits are huge, but drillers risk losing public support. To avoid a backlash, they should embrace more centralised regulation.
Bagehot to cenbanks: liquidity needn’t be cheap 30 Nov 2011 The 19th-century British financier believed in lending freely during crises but at high rates. Wednesday’s coordinated action by the ECB, the Fed et al boosted liquidity and reduced its cost. That could worsen imbalances. A Bagehotian approach would be workable and less risky.
Central banks take on market fears 30 Nov 2011 A six-nation coordinated move to make cheaper dollars available globally seems aimed initially at European banks. Like it or not, it shows a willingness to do what private investors won’t. If politicians show similar unity, they could win the standoff with markets over the euro.
Sino-Forest pays high price for valuable lessons 15 Nov 2011 An independent committee cleared the Chinese group of major accounting worries. But $3 billion of lost market value won’t be easily recouped. Sino-Forest could have helped itself with a simpler structure, more disclosure and by focusing on quality as well as speed of growth.
99 Cents Only shows the way to handle an MBO 11 Oct 2011 Instead of cozying up to the first buyout firm that came along, the discount retailer appointed independent directors to run an auction. They found a new buyer and 15 pct extra for shareholders, including the family owners. After the J Crew debacle, a fresh example is welcome.
Sinopec shows quirks of Chinese resource M&A 10 Oct 2011 The Chinese energy group has offered a massive 120 pct premium for Canadian producer Daylight. Like similar Chinese deals, the $2.2 bln offer works because of strategic necessity, still-high commodity prices, cheap capital and a shareholder none too fussed about value creation.
Thomson at last sees fit to merge with Reuters 28 Sep 2011 Three years after uniting, the onetime rivals are forcing the professional and financial publishing arms together. The acquired Reuters side retained a certain clout in 2008, but has struggled since. The Thomson family now seems to be reasserting control to make the deal work.
Settlements feed U.S. prosecutor overreach 16 Sep 2011 From Google to tire-maker Bridgestone, firms pay big money to avoid fights with the government in U.S. courts. Trouble is, these deals encourage prosecutors to go after what they can punish, not what the law prohibits. It’s another unpredictable cost of doing business.
Canada’s economy hampered by troubled neighbor 8 Sep 2011 The Bank of Canada has stopped raising interest rates at 1 percent, largely because of deteriorating U.S. conditions. That’s a pity - Canada would benefit from rates above inflation. But sluggishness and policy wrangling south of the border sap growth and push up the Loonie.
Tar sands pipeline environment fears are overdone 30 Aug 2011 Despite a sanguine State Dept, there’s heavy opposition to a $7 bln pipeline bringing Canadian oil to Texas. But oil sands are less dirty than their reputation, and the U.S. buys crude from worse polluters. There are better ways to control emissions than boxing in Canada’s oil.