Here are the top reads on deals and financial services over the last 24 hours,
FINANCIAL SERVICES NEWS
U.S. regulator fines RBC Capital Markets US$5-million for failing to prevent illegal trades: A U.S. regulator has fined RBC Capital Markets LLC US$5-million for failing to prevent hundreds of “fictitious” offsetting trades even after the investment bank’s parent company, Royal Bank of Canada, was disciplined for similar infractions in 2014. Traders at RBC’s U.S. capital-markets arm believed the trades were allowed, and used them as a cheaper, less cumbersome way to move positions in futures markets between accounts within the bank. When staff asked a compliance officer whether the trades were appropriate, “the officer did not respond, follow up with the exchange, or provide any formal training until at least May, 2015,” the Commodity Futures Trading Commission (CFTC) said in its ruling. Story (James Bradshaw)
Desjardins makes changes to exec team as financial co-operative looks to expand wealth management: Desjardins Group is making changes to its executive team as the financial co-operative looks to ramp up efforts to expand its wealth management business across Canada. Denis Dubois is taking over as executive vice-president in charge of wealth management, as well as the life and health insurance businesses. Mr. Dubois moves from another key role leading the property and casualty insurance arm of Desjardins, which he had held since mid-2016. Story (James Bradshaw)
National Bank takes full ownership of Cambodia’s ABA: National Bank of Canada has signed a deal pay $83.5 million to buy the 10 per cent stake in Cambodia-based ABA Bank that it did not already own. National Bank become a shareholder of ABA Bank in 2014 with an initial 10 per cent interest and increased it to 42 per cent in 2015 and to 90 per cent in 2016. Story (The Canadian Press)
DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS
Flutter buys PokerStars parent to create online betting giant: Gambling company The Stars Group Inc. has agreed to a US$6-billion takeover by a European competitor, the latest big deal in a consolidating sector that is looking for growth in the U.S. market. Toronto-based Stars Group, previously known as Amaya Inc., is to be acquired by Ireland’s Flutter Entertainment PLC in an all-share deal that would give Stars Group shareholders about 46 per cent of the merged entity. Its TSX-listed shares rose 31 per cent on the news to close at $26.49 apiece on the Toronto Stock Exchange. Story (Niall McGee)
Morgan Stanley, Goldman Sachs poised to lead Airbnb’s listing: report: Short-term home rental company Airbnb Inc is set to hire Morgan Stanley and Goldman Sachs Group Inc as joint lead advisers on its planned stock market flotation next year, people familiar with the matter said on Wednesday. The appointments would represent another high-profile assignment for the storied investment banks, albeit potentially less lucrative than usual. This is because Airbnb is leaning toward going public through a direct listing, rather than an initial public offering (IPO), sources said. Story (Reuters)
Canopy buys majority stake in sports drink company BioSteel: The time has come for an idea to have cannabis in sports drinks, says a former NHL player. The sports nutrition business Mike Cammalleri co-founded has been bought by a cannabis company. Canopy Growth Corporation announced Wednesday the purchase of a majority stake in BioSteel Sports Nutrition, which is now developing a line of cannabidiol (CBD) products. Story (The Canadian Press)
Vice Media to buy digital publisher Refinery29: Vice Media LLC said on Wednesday that it will buy Refinery29, an online publication focused on entertainment and lifestyle pieces for women, aiming to strengthen its content across platforms. The companies did not disclose the deal value, but the Financial Times reported that the transaction valued the companies at a combined $4 billion, citing people familiar with the matter. Story (Reuters)
HBC shareholder Paradise Developments latest to oppose chair Baker’s bid to take retailer private: Hudson’s Bay Co shareholder Paradise Developments on Wednesday became the latest investor to oppose Chairman Richard Baker’s $1.74-billion take-private offer for the department store operator, calling it inadequate. Story (Reuters)
The Streetwise newsletter is Monday to Friday. If you’re reading this on the web, or if someone forwarded this e-mail to you, you can sign up for Streetwise and all Globe newsletters on our signup page.