A look at some must-read news on deals and deal makers around the world
Is TD in the driver's seat to buy Chrysler Financial?
Bloomberg News is reporting that Toronto-Dominion Bank may make a deal this week to purchase Chrysler Financial Corp. from Cerberus Capital Management LP. Bloomberg says Cerberus will be looking for between $6-billion and $7-billion (U.S.) for the auto-loan company. The report says other potential buyers are also in talks with Cerberus.
Bloomberg says Chrysler Financial is mostly comprised of old car and truck loans, along with a platform and technology that a buyer could use to start an auto-lending business, said two people. The Wall Street Journal says ING Groep NV is also among buyers in talks with Cerberus.
"Scotiabank bought lease and finance receivables from GMAC. As long as the bank gets huge overcollateralization - it can be a good financial transition," Canaccord Genuity analyst Mario Mendonca said. "Also might give them the experience and knowledge needed to be a lease provider in Canada - if the bank act is revised to allow for it."
West Face in it for the long haul
Greg Boland, chief executive officer of West Face Capital Inc. spoke with The Globe and Mail's Jacquie McNish Monday for the first time since acquiring a 10 per cent stake in Maple Leaf Foods in August. Despite speculation that West Face is requesting a shareholder meeting to shake the board of directors simply to turn a quick profit, Mr. Boland said he plans to hold the stake for five years. He added that he simply wants to shake up the board because some directors, like Bay Street veteran Purdy Crawford, are too closely tied to the McCain family.
Citi bailout makes money for Washington
Two years after receiving a $45-billion (U.S.) cash infusion from the U.S. government, Citigroup has struck a deal to sell the last chunk of shares held by the U.S. Treasury department. Once complete, American taxpayers will make $12-billion from the bailout, something that seemed unlikely for a very long time. Of the initial money provided, $25-billion was converted to a government ownership stake that the Treasury has been selling off since last spring. Citi repaid the other $20-billion in December 2009. Morgan Stanley was bookrunner for the latest sale.
Carlyle applying finishing touches before IPO
Private equity shop Carlyle Group announced plans to buy a majority stake in Claren Road Asset Management as the firm tries to diversify heading into an expected initial public offering. Claren Road is a credit-focused money manager with $4.5-billion in assets and would provide Carlyle with a stable capital base. In April Carlyle also bought $5.1-billion in assets from Stanfield Capital Partners.