Here are the top reads on deals and financial services over the last week. Have a great weekend,
Mining: Barrick Gold Corp. plans to sell at least five more mines, as the company doubles down on its strategy to focus on profitable mining over growing its production. Story (Niall McGee, for subscribers)
Aeroplan saga: Aeroplan credit-card customers are finding themselves caught in the middle of a corporate spat, with Toronto-Dominion Bank sending mixed messages to its clients about Aimia Inc., the company that runs the airline-loyalty program. Story (Tim Kiladze, for subscribers)
Pensions: Canada’s largest public pension fund is maintaining a busy run of asset acquisitions, using its connections in numerous markets to avoid some of the sky-high prices for assets. Canada Pension Plan Investment Board (CPPIB) is working closely with local partners around the world to land deals in diverse industries, especially those outside the publicly-traded realm, chief executive officer Mark Machin said as the $367-billion fund released its fiscal 2019 first-quarter results. Story (Jeffrey Jones, for subscribers)
Cohodes and Badger: Badger Daylighting Inc. missed analyst expectations when it issued first-quarter results on May 12, 2017, sending its share price tumbling. But that wasn’t the biggest thing that happened to the company that day. Aggressive U.S. short seller Marc Cohodes, already engaged in a noisy battle with Canadian mortgage lender Home Capital Corp., announced that he was also targeting Badger, an environmental company that specializes in soil extraction for governments and oil companies. Story (David Milstead, Jeff Lewis and Alexandra Posadzki, for subscribers)
Cohodes regulation: Alberta’s securities regulator is seeking to block prominent short seller Marc Cohodes from trading in securities of Badger Daylighting Ltd., escalating a bitter feud between the oil-field services company and the U.S. investor. The Alberta Securities Commission (ASC) said Thursday that it is seeking the interim order on grounds that Mr. Cohodes has misrepresented Badger’s business – including allegations of illegal dumping – to support his short position in the stock. Story (Jeff Lewis, for subscribers)
Gas sector: Cenovus Energy Inc. is selling liquids-rich natural gas assets in northwestern Alberta to NuVista Energy Ltd. for $625-million in the latest in its series of asset sales aimed at reducing debt. Story (Jeffrey Jones)
Wealth management: CI Financial Corp., one of the country’s largest investment managers, is slashing its dividend nearly in half in a move it said will improve flexibility amid intense competition across the Canadian wealth management industry. Story (Tim Shufelt, for subscribers)
Energy sector: Ontario Power Generation is pursuing expansion in the United States as the Crown-owned utility faces uncertainty over Premier Doug Ford’s pledge to cut electricity rates. OPG announced on Thursday that it is purchasing Eagle Creek Renewable Energy LLC – which owns 63 small hydroelectric stations in 13 states − for US$298-million, marking the provincially owned utility’s first expansion outside the province. Story (Shawn McCarthy)
Mining sector: Nevsun Resources Ltd. is urging its shareholders to reject Lundin Mining Corp.’s $1.4-billion takeover offer, claiming it is too low and arguing that superior bids are likely to surface soon, now that the company has started a strategic review. Story (Niall McGee, for subscribers)
Layoffs: GMP Capital Inc. is laying off roughly 10 per cent of the staff from its Canadian capital markets business amid a slowdown in the energy sector. Story (Alexandra Posadzki, Jeffrey Jones and Niall McGee, for subscribers)
Takeovers: Alberta’s energy watchdog is seeking broader powers over corporate takeovers after the bankruptcy of a private Chinese natural gas producer exposed gaps in provincial regulations, its chief executive officer says. Story (Jeff Lewis, for subscribers)
Earnings: Thomson Reuters Corp. held a steady course in a second quarter marked by change, delivering 2-per-cent higher revenue while continuing to spin out its largest division as part of a US$17-billion deal with private equity giant Blackstone Group LP. Thomson Reuters Corp. held a steady course in a second quarter marked by change, delivering 2-per-cent higher revenue while continuing to spin out its largest division as part of a US$17-billion deal with private equity giant Blackstone Group LP. Story (James Bradshaw)
Fortress faces further legal action: A receiver has been appointed to take control of a Fortress Real Developments Inc. project on the waterfront in St. Catharines, Ont., adding to the growing list of legal problems facing the development company. Story (Janet McFarland, for subscribers)
From the sell-side on bank stocks: There are times when Canadian bank stocks trade more or less in unison, making it difficult to pick the winners from among the group. Last year was not one of those times. With the oil market still trying to reconcile a global oversupply, the spring of 2017 saw the near-collapse of alternative mortgage lender Home Capital Group, bringing renewed scrutiny upon the Canadian housing market and, by extension, the banks. “Those twin catalysts ended up creating an opportunity that frankly doesn’t always present itself in the banks,” said Robert Sedran, a bank analyst at CIBC World Markets. Mr. Sedran’s keen timing earned him the distinction of being last year’s top Canadian stock picker, as conferred by the Thomson Reuters StarMine Analyst Awards. Story (Tim Shufelt, for subscribers)
Marketing: Toronto-Dominion Bank and the Toronto Blue Jays are in the final stages of talks to expand a sponsorship deal that would secure TD’s status as the official bank of the baseball club. Story (James Bradshaw and Susan Krashinsky Robertson, for subscribers)
Regulation: There has been some criticism recently of the Ontario Securities Commission’s use of no-contest settlements. It has been suggested that it may be time to revisit their use as a policy matter. There is also concern that no-contest settlements are not sufficiently transparent, and may not serve as an effective deterrent to future transgressions. As a matter of principle, I supported the OSC’s policy on no-contest settlements when I was a vice-chair of the OSC, and I still believe they are an important and effective regulatory tool that should continue to be available to the Commission and its staff. Opinion (James Turner)
MORE FINANCIAL SERVICES NEWS AND DEALS NEWS FROM FRIDAY
International banking: Russia warned the United States on Friday it would regard any U.S. move to curb the activities of its banks as a declaration of economic war which it would retaliate against, stepping up a war of words with Washington over spiraling sanctions. Story
Brexit: Banks that move some of their business and staff out of London to cities scattered across Europe after Brexit could be taking on extra risks and costs without being sure of boosting revenues. Story
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