Tuesday, Jun. 18, 2013 5:48PM EDT

Spectra Energy urged to shake up its assets

Kelly Cryderman

An activist investor is urging Spectra Energy Corp. to become a holding company and spin out its U.S. and Canadian operations, including Westcoast Energy Inc.

In a letter this week, Sandell Asset Management said it believes that Spectre Energy stock has a value of $48 per share, more than 40 per cent over its current price. But in order to get out of the rut, the investment firm said Spectra Energy should operate as a holding company akin to Kinder Morgan Inc. and other similar North American energy entities that “trade at a premium valuation.”

Tuesday, Jun. 18, 2013 5:11PM EDT

Why catastrophe bonds could be coming to Canada

JACQUELINE NELSON

When it comes to the hunt for yield, natural disasters could be an answer for Canadian investors.

Governments and insurers in other countries reduce the risk of natural disasters such as earthquakes or hurricanes by selling catastrophe bonds through the capital markets, and a Canada-exposed investment of that kind could be coming soon, Sharon Ludlow, chief executive of global reinsurance giant Swiss Re’s Canada office, said in an interview.

Tuesday, Jun. 18, 2013 2:31PM EDT

Finning reboots after big mining-driven acquisition

TIM KILADZE

The euphoria that lured investors to Finning International Inc”s shares has fallen by the wayside.

In January 2012, the Vancouver-based company, which sells, services and leases heavy-duty machinery for the mining, energy and power sectors, struck a $465-million (U.S.) deal to buy a unit of Caterpillar Inc. that specialized in mining machinery.

Tuesday, Jun. 18, 2013 1:48PM EDT

Auditors reject mandatory rotation schedule

JANET McFARLAND

A new report on Canada’s audit standards has come out against mandatory rules that would require companies to regularly replace their auditors.

A steering group that has spent the past 18 months reviewing ways to enhance audit quality in Canada has issued its conclusions about recommended reforms, and has rejected the idea of requiring firms to rotate their auditors. The proposal, which is under review around the world, is intended to ensure auditors remain independent from the firms they are scrutinizing by not staying for too long on an auditing assignment.

Tuesday, Jun. 18, 2013 12:47PM EDT

Meet Tim Hortons’ latest activist investor

JOANNA SLATER

Yet another American hedge fund has ventured north of the border, keen on shaking up a Canadian icon.

The latest arrival is Scout Capital Management LLC, which revealed on Monday that it had accumulated a 5.5 per cent stake in Tim Hortons Inc. and has begun discussions with the company’s senior management.

Tuesday, Jun. 18, 2013 5:00AM EDT

Planets were aligned for Sobeys-Safeway deal

BOYD ERMAN

Stellarton, N.S., may be the sleepiest town in Canada with a big corporate head office. But clearly nobody is snoozing at the headquarters of Sobeys Inc., which just nabbed one of the premier assets in the Canadian grocery business with no competition.

The same can’t necessarily be said about Montreal and Toronto, where the brain trusts of rivals Metro Inc. and Loblaw Cos. are based.

Monday, Jun. 17, 2013 6:02PM EDT

Macquarie settles into its Canada niche

JACQUELINE NELSON

Where does Macquarie Capital Markets Canada Ltd. fit between the between the big banks and the boutiques?

It’s a question that the Canadian subsidiary of Australia’s huge bank has sought to answer for years, and its chief executive officer David Fleck said the company is getting better at recognizing where it can add value to the Canadian landscape.

Monday, Jun. 17, 2013 3:41PM EDT

Threats to Canada’s banks have diminished: BoC

TIM KILADZE

They aren’t yet in the clear, but Canada’s bank chiefs can breathe a bit easier.

That’s the official word from the Bank of Canada in its latest Financial System Review, which runs through the biggest threats to the stability of Canada’s financial system. The central bank concluded the environment today is much less risky relative to when it released its last review half a year ago.

Monday, Jun. 17, 2013 12:58PM EDT

Is Canada’s hot bond market about to cool?

TIM KILADZE

With real estate investment trusts in rough shape and preferred share prices slumping, the big fear on Bay Street is that Canada’s bond issuance starts to slow.

As U.S. Treasury yields bounce around, income-seeking investors aren’t quite sure of what to make of the choppy market, and that’s hit new issue volumes for REITs and preferred shares. With these securities out of the spotlight, it leaves bond issuance driving investment banks’ bottom lines.

Monday, Jun. 17, 2013 5:00AM EDT

Big names flock to Wekerle’s tech bank

BOYD ERMAN

There are some big names coming on board at Mike Wekerle’s startup technology-focused merchant bank.

Jim Shaw, who ran Shaw Communications Inc. for 12 years, and Ivan Fecan, who ran the CTV television network for even longer, are joining the board of directors at Difference Capital Financial Inc.

In addition, the firm created a five-person advisory board. It consists of former Ontario premier David Peterson, former federal member of Parliament John Reynolds, long-time financial executive Lorie Haber, former Yahoo Europe head Mark Opzoomer, and Jim Ryan, the former co-chief executive officer of bwin.party digital entertainment plc, the world’s biggest publicly traded online gaming company.

Friday, Jun. 14, 2013 6:48PM EDT

Enbridge subsidiary Midcoast Energy plans $575-million IPO

Carrie Tait

Enbridge Inc., through its web of subsidiaries, is livening up the deal market.

Midcoast Energy Partners L.P. – a subsidiary of Enbridge Energy Partners L.P., which is a subsidiary of pipeline powerhouse Enbridge – is planning an initial public offering of up to $575-million (U.S.) in units, according to documents filed with the Securities and Exchange Commission Friday.

Friday, Jun. 14, 2013 5:00AM EDT

Preferred share prices slammed just like REITs

TIM KILADZE

It’s hard to hide out there.

As U.S. 10-year Treasury yields soar, rising roughly 50 basis points since early May, the market’s gone a bit bonkers. And yield-driven securities are the hardest hit.

For the most part, the focus has been on real estate investment trusts, which have been slammed. The S&P/TSX Capped REIT Index is down 11 per cent since May 1.

Thursday, Jun. 13, 2013 6:02PM EDT

Kearl delays helped narrow Alberta oil price discount

Jeffrey Jones

Early this year all looked bleak in the Canadian oil market, with projections of deep discounts for the crude that prompted corporate spending cuts and a tough Alberta provincial budget.

It didn’t work out that way. The discount on heavy oil versus West Texas Intermediate, the North American benchmark, has been much narrower than expected and one of the reasons was spelled out on Thursday at Imperial Oil Ltd.’s investor meeting in New York.

Thursday, Jun. 13, 2013 4:21PM EDT

Manulife looks to Indonesia to meet profit targets

JACQUELINE NELSON

Manulife Financial Corp. needs Indonesia to say its name.

Being recognized by brand is a key part of the insurer’s plan to reach new consumers in the country as its GDP rises and incomes and purchasing power of residents follow. Nearly thirty years after it first entered the marketplace, Manulife is pouring the pressure on its various sales channels to make its Indonesia business a significant contributor to the insurer’s earnings targets within five years.

Thursday, Jun. 13, 2013 4:01PM EDT

Thomson Reuters proves that membership has its privileges

JODY WHITE

Can’t-miss stories from the Web

Here's a hot stock tip
In the unlikely event that there still exists a group of ordinary investors who aren’t convinced the markets are rigged in favour of the rich and powerful, a report by CNBC should do the trick.

It seems that the University of Michigan’s market-moving consumer confidence numbers are provided to Thomson Reuters, which in turn sells the data under contract to an elite (and deep pocketed) group of traders two seconds before its official release.

Thursday, Jun. 13, 2013 12:56PM EDT

Activist investor had a hand in Safeway deal

JACQUIE McNISH

It is hard to find a corporate transaction these days that does not have an activist agitating on the sidelines.

Tokyo-based Sony Corp. has come under pressure from New York activist Dan Loeb to spin off as much as 20 per cent of its entertainment assets. After a heated proxy-battle, New York oil company Hess Corp. last month agreed to give board seats to Paul Singer and his hedge fund Elliott Management, which is calling for major asset sales.

Thursday, Jun. 13, 2013 9:49AM EDT

RBC patents anti-high-frequency trading router

BOYD ERMAN

Developing a new trading technology is one thing. Getting it patented is quite another.

After almost four years of trying, Royal Bank of Canada’s securities division received a U.S. patent for a trading system designed to make it harder for high-frequency traders to figure out what other investors are doing.

Thursday, Jun. 13, 2013 5:00AM EDT

OSC assailed for dragging feet on proxy reforms

Janet McFarland

A group of Canada’s largest institutional investors are criticizing the Ontario Securities Commission for dropping mention of plans to reform the mechanics of the proxy voting system from its annual to-do list of priority issues.

The OSC’s annual “statement of priorities” last year listed various corporate governance issues related to voting shares and reforming the proxy voting system as top priorities, but the commission did not introduce reforms. When its new statement of priorities for the 2013-2014 year made no mention of the issues, investors grew concerned the OSC has dropped its focus on the subject.

Wednesday, Jun. 12, 2013 4:22PM EDT

TSX volumes on track for another plunge in June

BOYD ERMAN

Just when you think trading volumes on the Toronto Stock Exchange can’t fall any further, they do.

Average daily volume on the TSX in May was 326.7-million shares, according to reports from parent company TMX Group Inc. So far in June, average daily volume has slumped to 302-million, an analysis of TMX’s daily reports shows. That’s a drop of 7.6 per cent.

Wednesday, Jun. 12, 2013 3:35PM EDT

Ex-Stonecap analysts land new jobs

Jeffrey Jones

A pair of energy analysts who were affected by Stonecap Securities Inc.’s decision to shut its Calgary office have landed jobs at rival boutique firms.

Kuno Ryckborst, who covered domestic exploration and production at Stonecap, is due to start this week at PI Financial.

Amin Haque, meanwhile, has joined MGI Securities. He was an analyst for international exploration and production and oil service companies at Stonecap.

Wednesday, Jun. 12, 2013 3:04PM EDT

John Hancock adds to distribution in U.S. as wealth management booms

JACQUELINE NELSON

Manulife Financial Corp. is aggressively pursuing wealth management around the world, and on Tuesday it added a new broker-dealer and investment adviser network to its U.S. business, John Hancock.

The move to expand south of the border comes as the John Hancock business has been making strong gains. Not only were sales of new life insurance products up in the first quarter of 2013, it posted $7-billion in wealth sales for the quarter – an increase of 45 per cent from the first quarter of 2012 – with record mutual fund sales helping it reach these highs.

Wednesday, Jun. 12, 2013 1:22PM EDT

Dealers, dividend investors welcome Surge Energy deal

JEFFREY JONES

Surge Energy Inc.’s $225-million equity financing is a sizable piece of business for several dealers in a weak market, and an accompanying acquisition and strategic shift shows investor appetite for income remains strong.

There are several threads to this. First, the Calgary-based junior oil company, led by Paul Colborne, has agreed with Cenovus Energy Inc to acquire medium-gravity oil assets in Saskatchewan for $240-million. That will add 3,600 barrels a day of production right away and expose the company to as much as 230 million barrels of reserves in the lower Shaunavon formation, with just a tad recovered to date.

Wednesday, Jun. 12, 2013 12:21PM EDT

Another member of GMP’s old guard departs

BOYD ERMAN

Another member of the old guard has left GMP Capital’s trading desk, as vice chairman of institutional trading Mark Hawkins is gone.

Mr. Hawkins was also a member of the executive committee.

He took over as head of institutional trading when long-time head trader Mike Wekerle left the firm. Mr. Hawkins joined GMP in 1999.

Wednesday, Jun. 12, 2013 5:00AM EDT

Directors' group backs Quebec model on unwanted takeover bids

JANET McFARLAND

Canada’s largest association of corporate directors has come out in favour of Quebec’s position on proposed reforms to takeover rules, saying the province’s model will give boards more scope to deal with unsolicited takeover bids.

The Institute of Corporate Directors has taken a clear side in a national debate about how much power companies should have to reject unwanted takeover offers, saying the proposal from Quebec's securities regulator – the Autorité des marchés financiers (AMF) – should be adopted as a national system for all of Canada.

Tuesday, Jun. 11, 2013 6:04PM EDT

There’s time for Encana’s Suttles - but not forever

Jeffrey Jones

Doug Suttles was front man for BP PLC’s efforts to control the disasterous Gulf of Mexico oil spill in 2010, contributing such phrases to the popular lexicon as “junk shot” and “top kill.”

Those were the names of two failed stop-gap attempts at plugging the ill-fated Macondo well, which was eventually killed.

Tuesday, Jun. 11, 2013 3:00PM EDT

Canadian insurers look for the next big thing at home

JACQUELINE NELSON

Investors shouldn’t overlook the value of Canadian life insurers’ businesses at home, even if the prospects of new markets of Asia and recovery in the U.S. appear to be more dynamic.

Insurance companies can focus on their business fundamentals, now that the pressures of the recession are easing and interest rates and equity markets have risen.

Tuesday, Jun. 11, 2013 11:05AM EDT

Encana’s new CEO must learn bigger isn’t better

TIM KILADZE

In banking, there’s too big to fail. In natural gas, there’s too big to succeed.

It’s a lesson Encana Corp. learned the hard way. Roughly three years ago, Randy Eresman, the energy giant’s former chief executive officer, pledged to double natural gas production by 2015. Since then the company’s shares have plummeted about 45 per cent.

Tuesday, Jun. 11, 2013 5:00AM EDT

Private equity’s new way to deal

BOYD ERMAN

As the private equity merry go round keeps turning, it’s tempting to believe somebody is being taken for a ride.

More and more often, companies are being traded around by private equity owners. Almost a third of the private equity deals last year by value were so-called secondaries, where one private equity firm sells a business or asset to another private equity owner. That’s up from 9 per cent in 2006, according to figures from industry tracking firm Preqin.

Monday, Jun. 10, 2013 5:56PM EDT

Losing Lululemon is a blow to TSX

BOYD ERMAN

Lululemon Athletica Inc.’s plan to give up its Toronto Stock Exchange listing is a bigger blow in prestige for the market than it is financially.

Based on owner TMX Group Inc.’s TSX listing fee schedule (pdf), Lululemon would have paid about $95,000 a year in fees to keep its listing on the TSX.

However, losing one of its biggest homegrown names to Nasdaq, where most of the trading in Lululemon takes place, is a significant blow on a couple of other fronts.

Monday, Jun. 10, 2013 10:17AM EDT

U.S. insurer acquires storied Canadian company

JACQUELINE NELSON

One of Canada’s oldest insurance companies is being sold for $1.125-billion to a major U.S. insurer, in a deal that will see the business fall into foreign hands for the first time since it was founded by Sir John A. Macdonald in 1887.

Dominion of Canada General Insurance Co. is to be acquired by The Travelers Companies Inc.