Here are the top reads on deals and financial services over the last 24 hours,
The Big Short’s Eisman adds to bet against Canadian bank stocks after ‘exceptionally poor’ earnings reports: Hedge fund manager Steve Eisman of Neuberger Berman, made famous in the book and movie The Big Short, appeared on BNN Bloomberg on Monday to talk Canadian bank stocks. Mr. Eisman reported that he has increased his short positions in the sector after quarterly profit reports. Story (Scott Barlow, for subscribers)
Regulator again raises banks’ capital buffer, says risks ‘remain elevated’: Canada’s banking regulator continues to ratchet up requirements for banks to hold more capital as risks to the sector “remain elevated,” adding to a buffer designed to cushion the impact from future economic shocks. For the second time in six months, the Office of the Superintendent of Financial Institutions (OSFI) will raise the “Domestic Stability Buffer” held by banks, citing “key vulnerabilities” to the banking system such as high household indebtedness and rising corporate and commercial debt. Story (James Bradshaw, for subscribers)
DHX Media receives ‘unusual’ takeover overture from Indian auto-parts company: An auto-parts company from India is making an unsolicited and unusual takeover overture for TV production company DHX Media Ltd., saying it is offering to buy the owner of the Peanuts and Teletubbies brands at a 300-per-cent premium to where its stock was trading. Sakthi Global Holdings said in a news release that it is making an “unsolicited merger proposal” for Halifax-based DHX priced at $5.32 a share, with $1.32 to be paid in cash and $4 to be paid in Sakthi stock, which is thinly traded on the U.S. over-the-counter (OTC) market. Story (Andrew Willis, for subscribers)
Waterloo’s Kik Interactive charged by SEC over $100-million unregistered ICO: The U.S. Securities and Exchange Commission is suing Canadian tech startup Kik Interactive Inc. for allegedly conducting an illegal securities offering when it sold US$100-million of digital tokens in 2017. The securities watchdog alleges that the Waterloo, Ont.-based company, which operates a popular messaging app, violated securities laws because it failed to register the sale of its virtual “Kin” tokens. Story (Alexandra Posadzki, for subscribers)
Quebec developer seeks provincial backing for rival Transat takeover bid: A Quebec real estate developer has put forth a rival bid – and vision – for Transat AT Inc., putting pressure on Air Canada to raise its friendly offer for the Montreal-based airline and travel company. Group Mach Inc. on Tuesday went public with an offer of $14 a share for Transat, conditional on Quebec government financing, topping a bid made by Air Canada, which since May 16 has been in exclusive talks to buy Transat for $13 a share or $520-million. Story (Eric Atkins, for subscribers)
MORE FINANCIAL SERVICES NEWS
FBI reaching out to Quadriga users as it steps up investigation: The U.S. Federal Bureau of Investigation has stepped up its investigation into the demise of Vancouver-based Quadriga Fintech Solutions, which owned and operated one of Canada’s largest cryptocurrency exchanges before it was shut down amid a storm of controversy. Story (Canadian Press, for subscribers)
MORE DEALS NEWS
CN Rail CEO eyes acquisitions as railway boosts three-year profit goals: The head of Canadian National Railway Co. says major asset purchases will play a key role in fulfilling its new three-year financial target that exceeds its earlier 10-per-cent earnings-per-share growth. Story (Canadian Press)
Uber’s IPO underwriters recommend buying, estimate deep losses: The underwriters of Uber Technologies’ initial public offering on Tuesday overwhelmingly recommended the company’s shares, even as they estimated deeper losses than previously expected for the ride-hailing service this year. Story (Reuters, for subscribers)
IN CASE YOU MISSED IT
Meet Canada’s youngest female chief economist, Manulife’s Frances Donald: Manulife Asset Management’s Frances Donald has a new title: chief economist. At 33 years old, that makes her the youngest woman to become a chief economist in Canada, Ms. Donald said in an interview. She will also retain her current title as the global asset manager’s head of macroeconomic strategy. Story (Alexandra Posadzki, for subscribers)
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