Free trade can survive its Wallonian wobble 25 Oct 2016 The tiny Belgian region is holding up a trade pact between Europe and Canada. That doesn’t mean such deals are impossible, though - they just need even more time and creative thinking. The messy process also undermines the notion that ordinary people have no say in globalisation.
William Hill’s second fold raises the ante 18 Oct 2016 The $3.3 bln UK bookmaker called off a merger with Canada's Amaya after activist fund Parvus objected. That follows the decision to spurn a takeover bid from rivals 888 and Rank. With deal partners falling, revenue shrinking and no CEO, William Hill is playing a bad hand alone.
Nortel reaches end of tale of three bubbles 13 Oct 2016 The Canadian network-hardware maker went bust in 2009 after being valued near $300 bln in 2000's tech boom. Creditors got lucky in a smaller way when Nortel sold patents at inflated prices in 2011. The final frothiness in the cross-border bankruptcy is $1.9 bln in legal fees.
William Hill’s new card partner looks a better bet 10 Oct 2016 The UK bookmaker and Canada's Amaya, which owns PokerStars, are in talks to create a $5.5 bln company. A pending legal case at Amaya means William Hill needs to tread carefully. But with more online and abroad, Amaya looks more promising than recent suitors 888 and Rank.
Goldman rides only softly to SVG’s rescue 6 Oct 2016 The U.S. bank and Canadian pension funds outbid HarbourVest for the UK private equity investment fund. A little financial engineering and even the UK vote to leave the EU may have helped Goldman out. SVG investors get an offer that may prove only a little better, yet good enough.
Brazil’s energy future may fly under Canadian flag 23 Sep 2016 State-controlled Petrobras is selling its natural gas pipelines to help pay down debt. Investors from China and Singapore will back the $5.2 bln acquisition led by Toronto-based Brookfield. The clever structure and the buyer's deep pockets could augur more deals between the two.
Fertilizer duo bucks trend with $36 bln love-in 12 Sep 2016 Canada's Potash and Agrium are combining in a merger of equals. It's a contrast to past industry mash-up attempts, which gave off a whiff of exuberance before collapsing. There's plenty for both sets of shareholders to like, assuming the deal clears antitrust hurdles.
Enbridge $28 bln deal balances oil, gas and future 6 Sep 2016 The Canada-based oil-pipeline group is buying Spectra Energy, a U.S. peer focused on natural gas. Expected cost cuts cover the 12 pct premium, while the all-stock structure limits debt and gives Spectra owners upside on projects to come. The question is whether that's enough.
Potash giant emerges from ashes of failed deals 30 Aug 2016 Merger talks between Canada's Potash Corp and Agrium follow a string of aborted combinations dating back to Australian miner BHP Billiton's $39 bln swoop on Potash in 2010. As a commodities boom has gone bust, friendly attempts to forge a more modest merger look achievable.
Time for Peppa Pig’s owner to earn its chops 25 Aug 2016 ITV has pulled a 1 billion pound proposal to buy production group Entertainment One, after Peppa Pig’s owner said it was worth more. With the share price now well below the 236 pence approach, managers need a plan B. Luckily, there are ways to stack up their undervaluation claim.
More marriages of convenience (stores) on the way 22 Aug 2016 Canada's Couche-Tard is paying $4.4 bln for U.S. gas-mart owner CST Brands. That's steep, but the cost savings cover the 42 pct premium. It's another savvy deal from a Quebecois giant that has racked up an 800 percent-plus return for shareholders over the last decade.
Peppa Pig owner could fetch more diced up 17 Aug 2016 Entertainment One may be in the sights of private equity firm KKR as well as ITV. If the pig cartoon’s owner needs other ways to keep investors happy, it has options. Spinning off the maturing film division and a U.S. listing could add up to 50 percent to its market value.
Peppa Pig could find her fortune stateside 12 Aug 2016 Entertainment One, owner of the cartoon swine, could be attractive to American suitors after spurning ITV's low-ball 1 billion pound proposal. Amazon and HBO are keen to lard up on content. Higher valuations for similar U.S.-listed peers also offer a potential line of defence.
ITV can pay more for a slice of Peppa Pig 10 Aug 2016 Canada's Entertainment One rejected a 1 billion pound approach from ITV, an 8.5 percent premium on its closing share price. The Peppa Pig owner is well positioned for the shift towards digital content. And ponying up more would help ITV to diversify away from the UK.
Turnaround whizzes 3G could shake up diversity too 13 Jun 2016 The Brazilian investors aim to revitalize stodgy brands like Burger King. There’s work to do on their boards, though. The restaurant holding company’s all-male lineup looks very 20th century. A shareholder failed to force action, but 3G risks distraction if it doesn’t catch up.
Bitter Pill: The Wild Rise and Fall of Valeant Pharmaceuticals 6 Jun 2016 As the embattled drugmaker embarks on its next phase under new CEO Joseph Papa, Breakingviews chronicles the financial razzle-dazzle that got the company into the mess in the first place. The ride all the way up to a $90 bln valuation and back down has been a wild one.
Valeant may strain to engineer way out the in door 6 Jun 2016 As the embattled drugmaker prepares to report its first results under a new CEO, it’s also seeking a new business model beyond acquisitions and price hikes. Financial razzmatazz sometimes works both ways, but Valeant’s debt and possible suitors could make it hard science.
Cox: What Mark Zuckerberg could learn in Quebec 28 Apr 2016 The founders of mini-mart leviathan Couche-Tard devised a clever way to balance supporters and detractors of dual-class stock by eliminating voting rights over time. The idea would suit Facebook and many others, if only bad tendencies fueled by ego could somehow be overcome.
Valeant’s new CEO a good choice for a dim future 25 Apr 2016 Joseph Papa’s skill running a tight ship at Perrigo is sorely lacking at his new company. Valeant needs to keep staff, sell assets and pay down debt, all while coping with falling drug prices that have also hit Papa’s old firm. First he needs to ensure Valeant avoids a default.
Rail mega-deal pushed all the wrong buttons 11 Apr 2016 Canadian Pacific’s unsolicited $28 bln offer for rival Norfolk Southern managed to alienate nearly every ally it needed: U.S. regulators, the target’s board, customers, lawmakers and even the American military. The bidder has finally pulled the right lever – eject.