Here are the top reads on deals and financial services over the last week,
‘It’s never only about the money’: Past deals hint at tactics for Cogeco’s suitors: The move by Rogers Communications Inc. and Altice USA to launch a hostile takeover bid for Cogeco Communications Inc. and parent Cogeco Inc. without the support of the Quebec companies' controlling shareholder looks like a long-shot gamble to many experts. But they say similar past deals for family-controlled companies show there can be a path to victory for the would-be buyers. (Christine Dobby, Nicolas Van Praet)
Lightspeed looks for ‘profile-raising moment’ as stock debuts on NYSE, CEO says: Dax Dasilva, Lightspeed POS Inc. CEO, says the Montreal software company’s public offering on the New York Stock Exchange is aimed at raising its awareness in the U.S., where it does most of its business. (Sean Silcoff)
Citigroup’s Jane Fraser to be first woman to lead a big Wall Street bank: Wall Street’s longest-enduring glass ceiling is about to be broken. Citigroup Inc., the country’s third-largest bank with US$1.96-trillion in assets, said Thursday that Jane Fraser will become its chief executive in February. Ms. Fraser, the bank’s president and head of its global consumer banking business, will succeed Michael Corbat, who has served as chief executive since 2012. (New York Times)
Alberta to give First Nations loan guarantee for power plant project: Alberta Premier Jason Kenney’s political push to have Indigenous communities play a bigger role in energy development has its first real-world example. The province announced Wednesday it will provide a loan guarantee for a First Nations investment in a natural gas-fired generating facility it says will someday produce 8 per cent of the province’s average electricity demand, and further reduce the province’s reliance on coal. (Kelly Cryderman)
Ottawa and big banks team to offer funding, better access to capital, for Black entrepreneurs: The federal government and Canada’s biggest banks are partnering to provide a combined $221-million over four years in credit and services for Black entrepreneurs to address systemic barriers to success. The backbone of the Black Entrepreneurship Program will offer better access to capital, with Ottawa committing up to $33.3-million for loans worth between $25,000 and $250,000. (Josh O’Kane, Kristy Kirkup)
Energy sector’s drill-less recovery to spawn more takeovers: A wave of consolidation is bearing down on Canada’s oil patch as smaller companies exhaust their survival options and large players see bargains. Several deals have already been announced following a lengthy drought, including two last week. Investment bankers say industry financial woes made worse by the COVID-19 contagion are prompting virtually all corporate boards to run the numbers on potential transactions to either satisfy lenders or beef up to become relevant to institutional investors. (Jeffrey Jones, Emma Graney)
What enticed some hedge funds into investing in Cogeco? Its owners might need some cash: A handful of hedge fund managers are judging Louis Audet by what he’s done, not by what he says, and investing in Cogeco Inc. in expectation of a takeover. Back in January, months before Altice and Rogers came calling, Gestion Audem sold 288,183 shares in Cogeco through a private placement, a block worth approximately $27-million. That sale is now seen as a sign that members of the Audet family need cash, and would be open to parting with the two companies. (Andrew Willis)
Cogeco bid is a ‘marathon, not a sprint,’ Altice CEO says: The hostile bid for Cogeco by Rogers Communications Inc. and U.S. cable company Altice USA Inc. will be a “marathon, not a sprint,” Altice’s chief executive officer says, but both potential buyers are committed because the deal would offer them such attractive benefits. (Alexandra Posadzki)
LVMH drops $16-billion Tiffany deal, setting stage for legal dispute: French luxury goods giant LVMH SE abandoned its US$16-billion takeover of Tiffany & Co., a deal that has lost its gloss in the wake of the COVID-19 pandemic, setting the stage for a bitter battle as the U.S. jeweller sued to force it through. (Reuters)
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