A look at some must-read news on deals and deal makers around the world.
Big Numbers in Potash debate
Two big numbers emerge in the Potash Corp. of Saskatchewan takeover tale: $700-million and $100-million. The first is the value of the options held by Potash Corp. insiders should the BHP takeover go through, according to a Globe and Mail calculation. At $150 (U.S.) a share, which is where some expect BHP to go if investors shun the current $130 offer, the value jumps to more than $800-million (Canadian).
That dwarfs the second number, which represents the possible annual loss to Saskatchewan in corporate tax yields. That's one of the factors the government is concerned about, Premier Brad Wall told The Globe in an interview.
The tax loss would come from BHP writing off the interest costs on the acquisition loans that would fund almost all of the purchase price.
Meantime, still no sign of a bid from China.
What are the Chinese doing? Buying oil fields
Sinopec has made the second-largest purchase abroad ever by a Chinese company, laying out $7.1-billion (U.S.) to buy a 40-per-cent stake in Repsol's Brazilian unit, which is looking for oil off the shores of the South American country.
Ontario Teachers names new PE head, gives her plenty to do
Ontario Teachers' Pension Plan has named Bank of Nova Scotia executive Jane Rowe head of private equity. She will have plenty to do. In addition to an initial public offering of the firm's holding in a chain of vitamin stores, Teachers is looking to sell an insurance provider that's been a portfolio company since 2005.
Deutsche Bank has competition in high yield
Barclays Capital, thanks to the acquisition of Lehman Brothers, is chasing top spot in European rankings of high-yield bond underwriting. A year ago, Barcap sat in 15th place, but this year it's in third, behind Deutsche Bank and Credit Suisse.
Icahn pushes to combine MGM, Lion's Gate
Carl Icahn has been buying Metro Goldwyn-Mayer debt and is angling to merge the movie maker with Lions Gate Entertainment Corp., another one of his large holdings, according to The Wall Street Journal.
ChinaCache forges ahead with IPO
It's been a grim market for initial public offerings. Many that have gone ahead have struggled. Other companies, such as Liberty Mutual just this week, have decided to hold off to avoid a rocky reception.
But at least one of the big IPOs slated for this week is going ahead, with Chinese internet service provider ChinaCache International Holdings Ltd. completing the sale Friday morning of 6.06 million American depositary shares ("ADSs") at $13.90 (U.S.) apiece. That's well above the range of $10-$12 that had been talked about, signalling that if you have a good story to tell (Preferably one that repeats the word China a lot) you can get a deal priced.
The ADSs will begin trading on the NASDAQ Global Market today under the symbol "CCIH," ChinaCache said. BofA Merrill Lynch and Deutsche Bank Securities Inc. are joint leads on the offering.
With Canadian bankers saying they are eyeing some IPOs in their pipeline for release soon, the fact that this one got done will be heartening.
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