Robert FriedlandRafal Gerszak/The Globe and Mail
Brokerage GMP Capital is not in the good books of mining entrepreneur Robert Friedland and his latest venture, Ivanplats Ltd., after sending a critical e-mail to clients during the final stages of Ivanplats' initial public offering.
GMP's London sales desk sent a note last week, just as Ivanplats was closing the books on its $300-million IPO on the Toronto Stock Exchange, suggesting that investors instead consider buying Katanga Mining stock. GMP had worked for Ivanplats on previous fundraisings, but was not part of the group of banks handling the IPO, said a person familiar with the situation.
The e-mail begins "you choose," according to a copy obtained by Streetwise, then goes on to point out that Katanga is already public and has a producing mine. Ivanplats, by comparison, must build a mine and raise billions to finance it.
Ivanplats was apparently not amused, and went to GMP's senior management to complain, and convinced GMP to back down.
On Wednesday, the mining company announced in an e-mail to shareholders entitled "Facts, for the record" that GMP had corrected what Ivanplats called "false and misleading statements."
Ivanplats said it welcomed the "comprehensive correction and clarification issued today by a U.K.-based sales representative for GMP Securities to address false and misleading statements contained in a sales message e-mailed to GMP clients last week while Ivanplats was in its pre-IPO registration period."
Representatives for GMP did not return messages seeking comment.