Wednesday, Apr. 16, 2014 12:23PM EDT
Canadian oil sands producers shouldn’t fret about the shale oil revolution unfolding south of the border. The Bank of Canada predicts their product will still be swooned over.
Since the shale oil supply started to skyrocket five years ago, soaring to three million barrels per day, there has been a growing fear that Canada’s heavy oil will be run out of favour because it is much more labour-and-capital-intensive to produce.More »
Wednesday, Apr. 16, 2014 5:00AM EDT
Fairfax Financial Holdings Ltd. has told investors it likes Greece, and on Tuesday made a big bet on the recovering nation. Now, investors may be hoping for some Irish luck.
Fairfax is part of a consortium that is propping up Greece’s third-largest lender with a €1.3-billion ($2-billion) investment. Eurobank Ergasias SA, which was bailed out by the Greek government’s Hellenic Financial Stability Fund, will issue new shares to these backers. They will collectively become the bank’s largest shareholder.More »
Tuesday, Apr. 15, 2014 5:09PM EDT
Bank of Nova Scotia is losing another top executive. Chief operating officer and vice chairman Sabi Marwah – a highly respected veteran, and prankster, within the bank – is retiring at the end of May, capping off a 35-year career at the institution.
Mr. Marwah’s departure extends the growing list of executive changes at Scotiabank since Brian Porter replaced the retiring Rick Waugh as chief executive officer. Other changes in the past year include the departures of chief risk officer Rob Pitfield, marketing head Duncan Hannay and Scotia Capital co-head Steve McDonald.More »
Tuesday, Apr. 15, 2014 3:49PM EDT
Orange Capital LLC, the activist investor that successfully pushed for change at InnVest REIT, is looking to go two-for-two on successful Canadian campaigns in just a few months.
Newalta Corp. last week said that it was nominating two new directors after consulting with “certain major investors, including New York-based Orange Capital LLC, and respected their views” on board renewal.More »
Tuesday, Apr. 15, 2014 1:51PM EDT
You aren’t alone if your first reaction to the rumour that private equity players are circling arcade and restaurant chain Dave & Buster’s Inc. is one of confusion.
Dave & Buster’s, a U.S. chain with two Canadian locations, is often described as a grown-up version of Chuck E. Cheese. The chain offers arcade games and food – and most importantly, it serves alcohol.More »
Tuesday, Apr. 15, 2014 12:58PM EDT
The Canada Pension Plan Investment Board has closed a large real estate deal in Australia and says it has already sold four of the properties it acquired, raising funds to reduce its required equity investment in the portfolio.
CPPIB has partnered with Dexus Property Group to buy an Australian property portfolio controlled by the Commonwealth Bank of Australia for about $3.7-billion (Australian) or about $3.8-billion (Canadian). The giant pension fund, which manages the assets of the Canada Pension Plan, said its 50-per-cent equity investment in the deal was $1.9-billion.More »
Tuesday, Apr. 15, 2014 12:03PM EDT
Why are mortgage insurance premiums about to rise in Canada for the first time since the 1990s? The new guidelines that the country’s financial watchdog issued Monday offer some insight.
Banks are required to obtain insurance when they sell a mortgage to a customer who has a down-payment of less than 20 per cent. The mortgage insurance pays the bank back if the customer defaults on the loan. The insurance is there to protect the banks, but the banks almost always pass the cost of the insurance on to the customer.More »
Tuesday, Apr. 15, 2014 5:00AM EDT
A window is opening for BHP Billiton Ltd. to once again try a takeover of Potash Corp. of Saskatchewan.
Speculation is intense in the fertilizer industry that BHP may mount another campaign to win over Saskatoon-based Potash Corp. after being shot down in 2010. It failed the federal government’s murky “net benefit test” after a strong push from a Saskatchewan government that opposed the transaction.More »
Monday, Apr. 14, 2014 5:17PM EDT
Another initial public offering has found a very receptive audience, as alternative lender Callidus Capital is now going to sell $250-million of stock after strong demand from investors.
Callidus is expected to announce the final pricing for the IPO later Monday. There was about $1.1-billion of demand for the transaction, allowing Callidus to increase the offering size from the original plan of $175-million to $250-million, said a person familiar with the sale.More »
Monday, Apr. 14, 2014 5:11PM EDT
HudBay Minerals Inc. is asking Canadian regulators to get rid of Augusta Resource Corp.’s defense plan so that it can acquire Augusta’s copper project in Arizona.
HudBay already owns a 16 per cent stake in Augusta. But the Toronto-based company is blocked from acquiring more shares because Augusta adopted a shareholder rights plan, also known as a poison pill, when it found out HudBay had accumulated such a large position.More »
Monday, Apr. 14, 2014 5:06PM EDT
Canadian Imperial Bank of Commerce executives must be exasperated.
Despite trouncing rival Canadian lenders on everything from core earnings growth to return on equity since the end of the credit crisis, CIBC’s shares still trade at a lower price-earnings multiple relative to other bank stocks.
This may seem like a petty issue. Who cares about a simple P/E multiple when your stock’s gained 22 per cent in the past year? But in the banking world, a fat multiple is a sign of sheer strength.More »
Monday, Apr. 14, 2014 5:05PM EDT
Canada’s banks generally have shied away from India. An onerous regulatory system and unfamiliar business culture always made a move into what is now the world’s 10th-largest economy something short of the slam-dunk investment that Bay Street’s famously cautious bankers like.
It may be time for them to take another look – if they aren’t doing so already. Raghuram Rajan, India’s central bank governor, is leading one of the most forceful efforts to overhaul the Indian banking system in the country’s history. He wants it known that outsiders are welcome.More »
Monday, Apr. 14, 2014 12:41PM EDT
A boom in lending to energy companies in the United States has the country’s banking regulator worried that the meteoric rise will lead to loose underwriting standards.
Because the U.S. energy sector has exploded in recent years, driven by shale oil and gas production, banks are piling into the market. Heavyweights such as Bank of America Corp. and JPMorgan Chase & Co. have long lent to energy companies, and now their rivals are bulking up, with Associated Banc-Corp more than doubling its oil and gas portfolio in 2013 and Wells Fargo & Co. buying BNP Paribas SA’s energy lending business in 2012.More »
Monday, Apr. 14, 2014 10:59AM EDT
Real Ventures thinks the time is right to give more emerging entrepreneurs a shot at success. They now have the cash do it: The Montreal-based early-stage venture capital investors have just closed the first half of what’s expected to be a new $100-million fund.
Teralys Capital, backed by Caisse de dépôt et placement du Québec, is injecting half of the $50-million that’s ready to invest. Fier Partners, the federal government (via its $400-million Venture Capital Action Plan announced in January 2013), Real’s founders and a number of undisclosed angel investors round out the other contributors.More »
Monday, Apr. 14, 2014 9:25AM EDT
Increased confidence in global market stability is encouraging more companies to think about making acquisitions, a survey from Ernst & Young LLP has found.
Six months ago, one third of Canadian executives surveyed by E&Y planned to pursue an acquisition. In their most recent survey, that has increased to 41 per cent.More »
Monday, Apr. 14, 2014 5:00AM EDT
One of Goldman Sachs Group Inc.’s most experienced bankers is set to retire after almost four decades at the firm, most recently as head of the Canadian branch of the famed securities firm.
Goldman said in an internal memo that Jack Curtin, the chairman and chief executive officer of Goldman Sachs Canada, will step down at the end of the year. The firm is bringing home an experienced Canadian, Peter Enns, to take his place.More »
Friday, Apr. 11, 2014 3:45PM EDT
National Bank Financial has a new co-chief executive, elevating long-time head of corporate development and governance Brian Davis to the role of running the investment dealer.
He will team with longtime co-CEO Luc Paiement, who has focused on running the wealth management side of NBF. Mr. Davis’s job will be day-to-day oversight of the operations of the wholesale banking business of lending, underwriting, advisory and trading.More »
Friday, Apr. 11, 2014 3:07PM EDT
A Calgary energy researcher who’s become an prominent voice in the debate over oil sands development and transportation is leaving her U.S.-based consultancy after seven years.
Jackie Forrest, director of global oil for IHS CERA, is taking a short mid-career break before pursuing her next opportunity, one she hopes allows her to resume her role as a commentator on energy issues.More »
Friday, Apr. 11, 2014 1:49PM EDT
A sudden resurgence of institutional demand for equity financings is making it much easier for companies to raise money.
Although the S&P/TSX Composite Index has been on a wild run since June 2013, climbing nearly 20 per cent in that period, it wasn’t until recently that scores of deals started flying off the shelves. For the longest time, big money managers were extra selective about which deals they would participate in.More »
Thursday, Apr. 10, 2014 5:53PM EDT
Onex Corp.’s founder Gerry Schwartz earned $129.3-million (U.S.) as leader of the company in 2013, in a year where compensation for three other executives at the investment firm topped $17-million each.
Mr. Schwartz’s total from 2013 amounts to the biggest compensation package in Canada’s recent history, and far exceeds the largest pay package in Canada in 2012. Hunter Harrison, the turnaround leader at Canadian Pacific Railway, was the highest paid CEO that year, receiving $49.1-million including salary, options and bonuses.More »
Thursday, Apr. 10, 2014 3:26PM EDT
The “short Canada” trade has reached a fork in the road. One path is the one that it’s already on: A contrarian play deployed by relatively few fund managers willing to bet against Canada’s financial institutions and government debt. The other: Mainstream, which would see a wave of big-money investors join those hoping to profit from a sharp decline in a key sector of the Canadian economy.More »
Thursday, Apr. 10, 2014 2:32PM EDT
The Toronto-Dominion Bank is naming bank veteran Michael Twaits as the head of global foreign exchange, after the departure of Michael Gibbens from the post earlier this week.
A TD official confirmed that the news was announced internally on Thursday.
Until today, Mr. Twaits was the London-based head of the TD’s foreign-exchange and fixed-income operations in Europe and Asia. Mr. Gibbens stepped aside on Tuesday for personal reasons.More »
Thursday, Apr. 10, 2014 12:25PM EDT
On June 22, banking leaders in the U.K. and China signed a deal intended to open a torrent of new London trade in the RMB, the Chinese currency whose global importance is rising nearly as fast as China’s. It was, the BBC said, a 200-billion yuan ($35.1-billion) three-year contract “likely to boost trade between the U.K. and China in the yuan.”More »
Thursday, Apr. 10, 2014 11:55AM EDT
The difficult relationship between the owners of Telesat Holdings Inc. may finally be resolved by a huge takeover bid from one of Canada’s biggest pension funds.
The satellite operator drew interest from two of Canada’s largest pension funds, Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board (CPPIB), said a person familiar with the situation.More »
Wednesday, Apr. 09, 2014 7:21PM EDT
Canada’s most renowned value investor believes the market’s infatuation with Twitter and Facebook will “end in tears,” but sounded a new note of optimism about the outlook for battered BlackBerry Ltd.
Prem Watsa, chief executive officer of Fairfax Financial Holdings Ltd., has invested hundreds of millions in the smartphone maker and indicated it is on track to stanch its financial bleeding within a year.More »
Wednesday, Apr. 09, 2014 3:46PM EDT
The Ontario Teachers’ Pension Plan is opposing a new equity plan at Coca-Cola Co., saying it will vote against the company’s request for authorization to issue up to 500 million shares to employees in coming years.
The pension fund, which invests $141-billion of assets on behalf of Ontario’s teachers, said this week that it will not support Coca-Cola’s new equity grant request, which has been the subject of an opposition campaign launched last month by U.S. investment fund Wintergreen Advisers LLC.More »
Wednesday, Apr. 09, 2014 2:36PM EDT
Generally speaking, reporters should steer clear of policy advice. We know less than half of what we think we know, and we’re undereducated and inexperienced compared with the people we write about.
That said, allow me to suggest a way Ottawa and Bay Street could make a difference in the world. For those of you on Bay, there even may be a little profit in it.More »
Tuesday, Apr. 08, 2014 7:03PM EDT
Gasfrac Energy Services Inc. has pushed back the date of its annual meeting in May to examine potential changes to its board of directors after an activist investor accumulated a large position.
Gasfrac, known for its unique oil and gas rock-fracturing technology, said the company is evaluating the changes after discussions with its shareholders. It did not name the investors involved in the talks.More »
Tuesday, Apr. 08, 2014 5:26PM EDT
Michael Corbat can’t seem to catch a break.
Lately the chief executive officer of Citigroup Inc. has presided over a steady drip of not-so-great news. In February it emerged that Citi’s Mexico unit had lost $400-million (U.S.) in an apparent fraud that forced the bank to restate its results for the prior year. Last month, Citi was the only major U.S. bank to fail the Federal Reserve’s stress tests, with regulators citing deficiencies in the way it planned for adverse scenarios.More »
Tuesday, Apr. 08, 2014 4:36PM EDT
Osisko Mining Corp.’s chief executive said that Goldcorp Inc. would have to raise its hostile bid by at least $1.50 per share if it wants to top a friendly deal between Osisko and Yamana Gold Inc.
Vancouver-based Goldcorp is after Montreal-based Osisko for its large Canadian Malartic gold mine in Quebec. Its unsolicited bid is currently valued at $6.30 per share.More »
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Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial
Jacqueline Nelson is a financial services reporter at the Report on Business.
Joanna Slater is the Globe's New York Bureau Chief. Prior to joining the Globe in 2010, she worked for The Wall Street Journal, where her assignments included reporting on the financial crisis out of New York and covering South Asian business and politics from Mumbai.
Follow Joanna on Twitter @jslaternyc