Note to readers: The Streetwise newsletter will be taking a break for the next two weeks. It’ll be back Monday, Jan. 6. Have a happy holiday.
Here are the top reads on deals and financial services over the last week:
FINANCIAL SERVICES NEWS
Canadian securities regulators to ban deferred sales charges on mutual funds, except Ontario: A majority of Canada’s provincial securities regulators are moving to ban the sale of mutual funds that pay upfront sales commissions to financial advisers while charging investors early withdrawal fees, and will also eliminate advisory fees charged by discount brokerages where clients receive no advice. story (Clare O’Hara)
HomeEquity Bank completes Canada’s first sale of a reverse-mortgage portfolio: The largest Canadian provider of reverse mortgages has sold $75-million of the loans to another bank, marking the first time a portfolio of this special category of home loans has been sold as a financial product in Canada. Story (James Bradshaw)
Sun Life to acquire Britain’s InfraRed Capital Partners: Sun Life Financial Inc. is expanding its global footprint as it buys a majority stake in Britain-based InfraRed Capital Partners, a global infrastructure and real estate investment manager. Story (Clare O’Hara)
Northern Indigenous leaders meet with banks over investment in Arctic energy: First Nations leaders from Yukon are meeting with bankers in Toronto this week to try to persuade them not to invest in energy development on the range of a vital caribou herd. Story (The Canadian Press)
DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS
Canfor minority shareholders reject Pattison’s bid to take full control, shares plummet: Minority shareholders in Canfor Corp., who rejected a bid from B.C. billionaire Jim Pattison are banking on a rebound in the forestry sector in the long haul, but suffered in the short term after turning down his cash offer. Story (Brent Jang)
Minority shareholders show cash isn’t always king in buyout bids: Controlling shareholders are getting no respect. You’d think they’d enjoy the upper hand in takeover battles. But over the past few days, investors with large control blocks in Canfor Corp. and Hudson’s Bay Co. have been disappointed as minority shareholders spurned their offers, share-price reaction be damned. Opinion (Jeffrey Jones)
OSC issues order on HBC privatization bid; no vote until new year, if Baker decides to proceed: The OSC ruled that the retailer must file an amended takeover circular with the regulator five days before mailing it out to shareholders. A new meeting date would have to be set for at least 14 days after the mailing, according to the order, issued late on Wednesday. Story (Jeffrey Jones)
Cineplex board cuts termination fee to make a Canadian bid more attractive: Cineplex Inc. is taking unprecedented steps to entice a Canadian buyer into topping a $2.2-billion takeover bid for the country’s dominant movie chain from Britain’s Cineworld Group Inc. Story (Andrew Willis)
U.K. movie-theatre giant to buy Cineplex in $2.2-billion deal: Britain’s Cineworld Group PLC struck a $2.2-billion deal for Cineplex Inc., a move that creates North America’s largest movie-theatre chain at a time when the industry faces increasing competition from online services. Story (Susan Krashinsky Robertson)
Spoiler alert: Despite ‘go shop’ clause, no better bid is on the way for Cineplex: Trust a theatre owner to deliver a dramatic ending. Cineplex Inc. chief executive Ellis Jacob gave his shareholders a thrill with a $2.2-billion takeover bid from British-based rival Cineworld Group PLC that still leaves open the delicious possibility of a bidding war for Canada’s dominant movie chain. The deal is pitched at a 42-per-cent premium to the recent price of Cineplex shares, and contains what investment bankers call a “go shop” provision, which allows Cineplex to spend the next seven weeks trying to find a richer offer. Opinion (Andrew Willis)
TD obtains 50-per-cent stake in Quebec mall: Toronto-Dominion Bank’s real estate funds are making a bigger bet on shopping malls by acquiring a 50-per-cent stake in one of Cadillac Fairview’s Quebec malls along with the option to buy part of Sherway Gardens mall in Toronto. Story (Rachelle Younglai)
Proposed Fiat Chrysler, Peugeot merger will save US$4.1-billion without layoffs or plant shutdowns, executives say: A proposed merger between Fiat Chrysler and Peugeot maker PSA will achieve yearly cost savings of US$4.1-billion without layoffs or plant shutdowns, executives unveiling final terms of the deal said on Wednesday. Story (Eric Atkins)
IN CASE YOU MISSED IT
Why investor brainiacs couldn’t beat the market over the past decade
During the 10 years that ended June 30, the bare-bones 60/40 investing approach produced a 10.5 per cent annualized return. By comparison, the brilliantly managed endowment funds of the Ivy Leagues returned only 10.3 per cent a year. Story (Ian McGugan)
The Canadian stock market enters the 2020s with signs of promise
The 2010s will go down as an era dominated by high-tech and high-growth stocks, of which Canada had precious few. Going into the decade, hundreds of energy and materials listings collectively accounted for nearly half of the stock market’s total value. Story (Tim Shufelt)
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