The Seine river is seen from the south-west side of the Eiffel Tower.LIONEL BONAVENTURE/AFP / Getty Images
Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This will be updated through the morning.
Nevsun Resources Ltd. said that a lawsuit has been filed against it in the B.C. Supreme Court by three individuals who claim to have once worked with a local sub-contractor at the Bisha Mine in Eritrea. The lawsuit makes human rights allegations against the company and its local sub-contractor. The company denies the allegations and will vigorously defend itself against this claim.
Shares in Nevsun spiked Thursday after Bloomberg News reported that OKR Corp. a mining fund, is close to making a bid for the company that could be worth about $1-billion (U.S.).
Raymond James analyst Adam Low calculated that at current exchange rates, the bid implies a fully diluted share price of $5.42 (Canadian). "As the rumoured bid price is close to our target price, we consider the valuation to be close to fair for what Nevsun currently is, but it does leave room for upside given what we believe Nevsun could become," Mr. Low commented in a note. He has an "outperform" rating and $5.50 (Canadian) price target on Nevsun shares, which are down 0.8 per cent at $4.68 in early TSX trading.
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Altus Group Ltd. said that it intends to acquire SC&H Group Inc.'s state and local tax consulting practice for $38-million (U.S.), "making it one of the largest property tax advisors in the U.S."
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American Hotel Income Properties REIT LP said it has agreed to acquire a portfolio of four branded hotel properties in North Carolina and Florida for $41.0-million before customary closing and post-acquisition adjustments. The purchase price does not include a $2.5-million restricted cash reserve for the completion of brand mandated property improvement plans.
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Columbus Copper Corp. said that it is filing documents for the consolidation of its shares, planning a reverse 10-for-1 stock split.
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Eagle Energy Trust said its special meeting of unitholders originally scheduled for November 24 to vote on a special resolution to amend the investment restrictions in Eagle's Trust Indenture to permit the acquisition of Canadian energy assets has been postponed to December 15.
"The special meeting has been postponed to provide a greater number of unitholders the opportunity to consider and vote on this important resolution that will enable Eagle to expand its business strategy to acquire Canadian oil and gas assets."
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In analyst commentary this morning:
Jennings Capital initiated coverage on Blackbird Energy with a "speculative buy" rating and 65 cents (Canadian) price target.
Inovalis Real Estate Investment Trust offers investors an opportunity to participate in a growing European real estate platform, says Desjardins Securities analyst Michael Markidis. Following a recent acquisition, the REIT's exposure to properties in dense, urban areas of Paris has increased. Partially due to low-cost debt, Inovalis offers an attractive and sustainable cash yield of approximately 9 per cent. Mr. Markidis maintains his `buy rating and $10 (Canadian) price target.
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Darcy Keith