The Caisse de dépôt et placement du Québec has slashed its investment in X2 Resources Partners LP Inc., a potentially troubling sign for mining magnate Mick Davis's fund.
The Caisse reduced its position in X2 to between zero and $5-million at the end of 2015 from as much as $30-million in the previous year, according to the Quebec pension fund's documents released in April.
Mr. Davis, the former Xstrata chief executive officer with a sterling reputation, easily raised $1-billion (U.S.) in 2013 to start his own mining venture. He has since raised up to $5.6-billion from investors when most of the mining industry has been begging for cash. Of that amount, $4-billion is committed capital, which can be spent immediately, and the remaining $1.6-billion can be spent under certain conditions.
But X2 has yet to deploy any of its capital even as mines are increasingly put on the auction block amid a prolonged commodities downturn.
The problem for Mr. Davis is that his investors must sign off on any deal before he can pull the trigger, sources said. The other difficulty is that the investors expect a higher rate of return on their investment, making it harder for X2 to compete with mining companies for the same asset.
Some investors have privately expressed frustration with what seems to be a lack of progress, sources said. Story
Why CPPIB is banking on hotel bookings
Vacationers and business travellers may soon have Canada Pension Plan Investment Board to thank for their hotel reservations.
The country's largest pension fund is betting on an often unseen industry that controls overnight accommodation bookings, buying half of Spanish company Hotelbeds Group from Germany's TUI Group. The €1.2-billion ($1.7-billion) deal is being split with private equity firm Cinven, with the aim to build a larger network of international hotels and booking partners through more deals in the future.
The hotel business is centuries old, but the online network used to sell rooms today has evolved dramatically in the past decade. The Internet has made booking travel easier than ever, with flights, cars and hotel rooms just a few clicks away. Want to take a cruise or a tour? Just click. Want to read the rest of this story? Click here.
Amid signs of indie rebound, GMP's troubles persist
A lot can change in the space of a quarter. Especially for an independent brokerage on Bay Street.
January was pretty much the nightmare scenario for the industry. Crude was trading in the region of $30 (U.S.) a barrel. Underwriting was dead and trading activity was moribund. A number of smaller independents had recently gone out of business, and many observers figured more closings were coming.
Then, seemingly out of nowhere, things got better. Big-capitalization Canadian companies such as Franco-Nevada Corp., Enbridge Inc. and TransCanada Corp. started doing sizable secondary stock offerings. Oil perked up, too. Suddenly there was work to be done for the dealers.
GMP Capital Inc.'s first-quarter results, released Thursday, point to the worst possibly being over at the firm. But it's also clear that, despite coming through one of the most volatile periods in memory, the firm isn't out of the woods yet. Story
Barrick rights the ship on pay
Going two-for-four is a fine day at Rogers Centre for Joey Bats and his Blue Jays teammates. As far as say-on-pay votes go, however, it's another matter entirely.
That's the scorecard for Barrick Gold Corp. with this week's win on its shareholder vote on advisory compensation at the annual general meeting.
Clearly, Barrick has had a few problems in recent years sorting through best practices in executive pay. This week's vote, in which Barrick got 90 per cent of the shareholder's vote for its pay plan, suggests the company is finally on the right track. Story
DAILY DEALS
With its multibillion-dollar order from Delta Air Lines Inc., Canadian plane maker Bombardier Inc. has finally broken into the mainline aircraft duopoly held by Boeing Co. and Airbus Group SE. Story
Suncor Energy Inc. said it is buying another stake in the Syncrude Canada Ltd. project, deepening its exposure for the second time in as many months to one of the industry's most unreliable operations. Story
Potash Corp. of Saskatchewan is not actively looking to sell its phosphate business, its CEO said Thursday. Story
Abbott Laboratories said on Thursday that it would buy St. Jude Medical Inc. in a $25-billion deal. Story
Billionaire activist investor Carl Icahn said Thursday he had sold his entire stake in Apple Inc., citing the risk of China's influence on the stock. Story
ON THE MOVE
Bank of America appointed Glenn Koh head of global equities trading, a newly created role, as part of a broad reshuffle. Story
IN CASE YOU MISSED IT
Bank of Nova Scotia's latest restructuring efforts have spread to its wealth management arm, with major changes to the ScotiaMcLeod retail adviser network announced this week. Story
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