Friday, Mar. 14, 2014 6:20PM EDT
An investment that the Ontario Teachers Pension Plan made in Danish cleaning service company ISS Group is turning out big returns after its debut on the public market.
Back in August 2012, Teachers invested 2.61 billion Danish kroner (roughly $427.7-million at the time) in ISS alongside 1.12 billion kroner from KIRKBI Invest, an investment and holding company for the Kirk Kristiansen family, which controls Lego.More »
Friday, Mar. 14, 2014 3:05PM EDT
Let’s say you irritated your banker; not a wise move, but we humans don’t always think rationally.
Your banker angrily threatens to bring you to heel by locking you out of your accounts. You get a week or so to correct your behaviour, or suffer the consequences. What do you do?
Most likely, your rational side kicks in and you get your money as far away from said banker as you can, while the getting is good.More »
Friday, Mar. 14, 2014 2:12PM EDT
Five years after the financial crisis, major global players are finally getting serious about bonus clawbacks. The question now is whether bank boards will ever exhibit the grit necessary to enforce them.
In the past two days alone, the Bank of England proposed new rules that would order British banks to claw back bankers’ bonuses if they acted inappropriately and Citigroup inserted tougher language into its proxy circular, expanding its right to take back money or shares that had already been paid.More »
Thursday, Mar. 13, 2014 5:52PM EDT
Goldcorp Inc. founder Rob McEwen said he believes his former company will not face competition in its quest to own Osisko Mining Corp.
Goldcorp, which Mr. McEwen built into a serious gold player before leaving in 2005, is entangled in a hostile bid for Osisko and its large Canadian Malartic gold mine in Quebec.More »
Thursday, Mar. 13, 2014 3:37PM EDT
North West Upgrading Inc. is looking to add a huge chunk of debt to its balance sheet to finish its refinery construction, at the same time that equity investors are seeking to get some money out.
Calgary-based North West is looking for $5-billion of debt in the next few months. The closely held company, which is building an increasingly costly bitumen refinery in Alberta, said in a fresh investor presentation that it is planning to have a syndicated credit facility and bond financing in place by mid-year to raise the money. On top of that, it plans to have $225-million of subordinated debt in place by next month.More »
Thursday, Mar. 13, 2014 12:25PM EDT
Investors in most Canadian provinces are likely to start getting pitches from companies to buy a little more of stocks they already hold. A group of securities regulators across the country are going ahead with a proposal to allow companies to raise cash by selling stock to their existing investors, without the hassle of a prospectus.More »
Thursday, Mar. 13, 2014 9:08AM EDT
An unexpected peacemaker has emerged to help end the short, sharp battle over the future of InnVest Real Estate Investment Trust.
The REIT said Thursday that it had settled with the activist investor who had been demanding change at Canada’s biggest publicly traded hotel owner. The surprise twist is the appearance of Canada’s largest real estate private equity firm, KingSett Capital, which had been a quiet shareholder of InnVest and helped broker the deal.More »
Thursday, Mar. 13, 2014 5:00AM EDT
Silicon Valley prides itself on being an oasis free of suits, but that hasn’t stopped Dave McKay from showing up.
To bridge the gap between Bay Street and the close-knit U.S. tech community, Mr. McKay, Royal Bank of Canada’s president and incoming chief executive officer, makes it a priority to trek out to the innovation hub, stopping at places such as Facebook Inc.’s campus in Menlo Park, Calif.More »
Wednesday, Mar. 12, 2014 1:31PM EDT
How quickly we forget that Canada’s banks still stand out on the global stage.
After a quarter in which the country’s two largest lenders posted profits of more than $2-billion each, and three of the Big Six banks reported record earnings, investors didn’t seem to care. Canadian bank stocks barely budged.More »
Wednesday, Mar. 12, 2014 10:58AM EDT
Veteran merger lawyer Jean-Paul (J-P.) Bisnaire will officially retire from Manulife Financial Corp. at the end of 2014, and the insurer has named a replacement.
Stephen Sigurdson will take over the role of general counsel at Manulife on May 1.
Mr. Sigurdson’s current title is executive vice-president and general counsel Canada, and he has managed government relations, industry relations and compliance in Manulife’s Canadian division.More »
Tuesday, Mar. 11, 2014 5:00PM EDT
After a year of doldrums in the equities business, the first two months of 2014 have shown a remarkable turnaround as investors are once again snapping up new share sales and trading Canadian stocks at a pace not seen in more than two years.
In 2013, as equity markets in the U.S. soared and Canada’s could not keep up, volumes stagnated on Canadian markets because investors shifted their interests elsewhere. A lack of interest in commodity stocks put the brakes on financing activity.More »
Tuesday, Mar. 11, 2014 4:10PM EDT
It didn’t take long for a freak-out to ensue. As soon as Australian markets opened on Monday morning, the country’s big diversified miners took a beating because of heightened fears about China’s cooling economy.
Since the opening bell that morning, shares of Rio Tinto Ltd. slumped 7 per cent, while Fortescue Metals Group Ltd.’s dropped 11 per cent.More »
Tuesday, Mar. 11, 2014 5:00AM EDT
There are more women in bank boardrooms every year. There are more women in banks’ top executive offices. Where there aren’t noticeably more women is in investment banking.
The business of buying and selling securities, providing huge financings to companies, and of advising on merger deals remains very, very male. Many years of talking about the issue has not yet perceptibly changed that.More »
Monday, Mar. 10, 2014 5:35PM EDT
Fairfax Financial Holdings Inc. chief executive Prem Watsa still has deep concerns about the shape of the world’s economy.
The insurance and investments company’s hedged common equity exposures kept it on the sidelines in 2013, while financial markets soared. The S&P 500 was up 30 per cent last year, while Fairfax had a total investment return of minus-4.9 per cent.More »
Monday, Mar. 10, 2014 4:15PM EDT
If only RBC Capital Markets had fully disclosed all of its actions when advising Rural/Metro Corp. By withholding some facts, the lawsuit against the investment bank looks much more clear cut.
To recap: Royal Bank of Canada’s U.S. investment-banking arm was dinged by a Delaware court this weekend for failing to disclose that it bid to finance Warburg Pincus LLC, the private equity firm that bought Rural/Metro, all while advising Rural/Metro’s board on the acquisition.More »
Monday, Mar. 10, 2014 12:13PM EDT
David Fleck, the former head of Macquarie Capital Markets Canada, is taking on two new roles.
Mr. Fleck has been appointed to the board of directors of Alamos Gold, a Canadian miner with operations in Mexico.
He will also join Toronto-based asset manager Delaney Capital Management in April, where he will become a partner.More »
Monday, Mar. 10, 2014 12:06PM EDT
Cassels Brock & Blackwell has hired Bernd Christmas, a high-profile Mi’kmaw lawyer, to help the firm’s many mining-industry clients in their talks with First Nations.
Aboriginal law is seen as a key area for Bay Street law firms with natural resources clients, as mining companies and others increasingly end up at odds with First Nations groups when trying to develop a project on their traditional lands.More »
Monday, Mar. 10, 2014 11:34AM EDT
Imperial Capital has come a very long way in 24 years from the $2.7-million fund that the Toronto private equity firm started with, closing on a $295-million fundraising for its fifth fund.
The firm aimed for $250-million but after a year of fundraising easily surpassed that level. At close to $300-million, Imperial’s latest fund is one of the largest raised in Canada in recent years.More »
Friday, Mar. 07, 2014 3:10PM EST
The $51.6-billion Healthcare of Ontario Pension Plan (HOOPP) bested its peers with a funding ratio of 114 per cent at the end of 2013. But even with that success, HOOPP’s chief executive isn’t expecting other plans to adopt his investing methods.
HOOPP is well known for its liability-driven investment (LDI) pension management strategy, which aligns the plan’s assets with its future liabilities to limit volatility. This involves holding a lot of long-term bonds. In the past few years, the focus on bonds has been highly profitable for HOOPP, leading to double-digit investment returns in 2011 and 2012, and keeping the plan more than fully funded.More »
Friday, Mar. 07, 2014 1:52PM EST
Dividends are usually viewed by management as sacrosanct. Except at Constellation Software Inc., where Mark Leonard, the company’s CEO, just told his shareholders the quarterly payout could disappear at any moment.
Constellation is an acquisition machine, so it might need the money for a purchase, Mr. Leonard said as the company announced earnings.More »
Friday, Mar. 07, 2014 11:17AM EST
From Bay Street to Ottawa and back again.
That’s been the career path for David Wolf, who was just named Fidelity Investments Canada’s newest portfolio manager.
Mr. Wolf used to work on Bay Street, at both RBC Dominion Securities and Merrill Lynch Canada, but he left for Ottawa in 2009, where he served as adviser to former Bank of Canada governor Mark Carney.More »
Thursday, Mar. 06, 2014 6:40PM EST
Arizona-based Chaparral Gold Corp. said on Thursday that it controls enough shares to block a hostile bid from Toronto-based private equity firm Waterton Global Resource Management.
Chaparral directors, management and shareholders representing more than 50 per cent of its outstanding shares have indicated that they will not tender their stock to Waterton’s $58.8-million offer, the company said in a statement.More »
Thursday, Mar. 06, 2014 7:25AM EST
Goldcorp Inc.’s sale of $225-million of shares in Primero Mining Corp. drew a lineup of buyers, yet another signal that interest in the gold sector is heating up.
And it means shares of Osisko Mining are likely to get some attention on Thursday morning as the sale gives hostile bidder Goldcorp more cash to potentially raise the bid.More »
Thursday, Mar. 06, 2014 5:00AM EST
Here we go again. For what feels like the umpteenth time, someone with clout is calling for a big drop in Canadian house prices.
This week the culprit is Pimco, speculating that domestic house prices will drop 10 to 20 per cent in real terms over the next three to five years. The more heavyweights that join the chorus, the more international news organizations pile on, with the Financial Times the latest to report on the worries.More »
Wednesday, Mar. 05, 2014 4:53PM EST
Come May, Bank of Nova Scotia will only have one head of its capital markets arm.
Steve McDonald, currently group head and co-chief executive officer of Scotia Capital, is retiring at the end of April.
Mike Durland, who co-heads the global banking and markets arm, will assume sole leadership after Mr. McDonald leaves.More »
Wednesday, Mar. 05, 2014 2:22PM EST
Resource Capital Funds, a private-equity firm that invests in mining assets, has hired a syndication specialist to help pull together entire financing packages for miners.
“The real potential value to be created in this market is to be the catalyst to bring the financing, the entire package together,” Denver-based Resource Capital partner Ross Bhappu told a mining conference in Toronto on Wednesday.More »
Wednesday, Mar. 05, 2014 1:26PM EST
KKR Inc., the investment firm led by Henry Kravis and George Roberts, has amassed a $2-billion (U.S.) fund targeting unconventional oil and gas resources in North America.
The New York-based firm said its KKR Energy Income and Growth Fund I attracted a wide array of global investors, including pension funds, sovereign wealth funds, insurance companies and individuals. It will concentrate on joint-venture drilling, acquiring assets and seeking out other “opportunistic” investments, it said.More »
Wednesday, Mar. 05, 2014 12:25PM EST
Salman Partners Inc. intends to stay active in the oil patch despite its current challenges. It’s just a question of how broadly it will cover the sector, chief executive Terry Salman said.
The resource-focused boutique dealer recently announced several departures of key staff, against a backdrop of weak market conditions and squeezed revenue.More »
Wednesday, Mar. 05, 2014 10:16AM EST
Canadian technology startups have someone they need to get to know: Kent Thexton, who is now in charge of technology, media and telecommunications at OMERS Ventures.
OMERS Ventures has been the go-to fund for venture capital investments in Canada of late, especially when a company needs a big cheque. The fund has backed many of the hot startups in Canada that are now queued up to go public, including Vision Critical and Shopify.More »
Tuesday, Mar. 04, 2014 2:08PM EST
Canada’s largest banks are stuffed with capital, giving them the freedom to go buying should they so choose.
Across the five biggest banks, the common equity Tier 1 ratio – the all-important measure – now averages 9.4 per cent. At that level, the banks are well above the globally-mandated 7-per-cent minimum, and even surpass Canada’s 8-per-cent requirement.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