Editor’s note: Due to the holiday weekend, the Streetwise newsletter will resume on Wednesday, May 23, 2018.
Here are the top reads about deals and financial services stories from the week. Have a great long weekend,
Enbridge consolidation: Enbridge Inc. is making good on a promise to untangle its structure by buying out its four publicly traded subsidiaries for $11.4-billion in stock. The proposed move will result in all of the partly owned units - Spectra Energy Partners L.P., Enbridge Energy Partners, L.P., Enbridge Energy Management LLC and Enbridge Income Fund Holdings Inc. - being folded back into the parent company at various exchange ratios. Story (Jeffrey Jones, for subscribers)
Callidus woes: Callidus Capital Corp., the publicly-traded lender run by financier Newton Glassman, has been under scrutiny from Ontario’s securities regulator for its disclosure about an investment in a company that makes casino games. Story (Andrew Willis and Jeffrey Jones, for subscribers)
Executive appointment: ATB Financial has chosen Curtis Stange to be its next chief executive officer, reaching within its own ranks for a successor to retiring leader Dave Mowat. Story (James Bradshaw , for subscribers)
Bank Deal: Walmart Inc. has reached an agreement to sell its Canadian banking operations to financier Stephen Smith and private equity firm Centerbridge Partners LP. Walmart Canada Bank, which launched its first credit card in Canada in 2010, had been up for sale since last year. Walmart revealed the sale in financial disclosures on Thursday, but did not disclose the buyers or terms of the agreement. Story (James Bradshaw, for subscribers)
CPPIB: Canada Pension Plan Investment Board is rolling out its plans to manage increased contributions from Canadian workers, and charting a new investment strategy designed to make the fund more competitive as it grows. CPPIB, the largest pension investment fund in the country, is preparing for an influx in new capital linked to the Canada Pension Plan expansion. Story (Jacqueline Nelson, for subscribers)
Home Capital: Alternative mortgage lender Home Capital Group Inc. has secured a smaller, less expensive credit line from two Canadian banks to backstop any unexpected funding needs. Starting in July, the two-year, $500-million credit facility will replace an existing $2-billion line of credit from Berkshire Hathaway Inc. – the firm run by billionaire investor Warren Buffett, which is Home Capital’s largest shareholder. Story (James Bradshaw)
Regulation: The chair of Ontario’s securities watchdog is raising red flags about growth in the alternative mortgage lending space. Speaking at a Toronto Centre event about financial stability on Monday, Maureen Jensen said recent efforts to remove risk from the banking system have caused activity to move into other, less heavily regulated areas such as syndicated mortgage lending as well as mortgage investment corporations (MICs), which are unregulated. Story (Alexandra Posadzki and James Bradshaw, for subscribers)
Hydro One: As Ontario’s political leaders hammer Hydro One Ltd. over its executive pay, election campaign threats are weighing on the business, prompting the company’s chief executive officer to spell out the consequences of this newfound interference. Hydro One has dominated headlines ahead of Ontario’s provincial election on June 7 after Progressive Conservative Leader Doug Ford threatened to fire the utility’s CEO Mayo Schmidt and replace the board of directors because of executive pay levels. Mr. Schmidt was given a $1.7-million raise last year, bringing his total compensation to $6.2-million. Meanwhile, the NDP has pledged to repurchase Hydro One following its 2015 privatization. In an interview Wednesday, Mr. Schmidt warned that such political meddling could set Hydro One back at a critical juncture in the North American power industry. Story (Tim Kiladze, for subscribers)
Railway mergers: Canadian National Railway Co. is eyeing smaller takeover targets to improve its network, but does not believe U.S. regulators would be open to large mergers in the North American rail industry. Story (Eric Atkins)
How Paul Desmarais Jr. became mired in a Syrian cement plant probe: Canada’s billionaire Desmarais family has never been known for its passive investment style. Opinion (Konrad Yakabuski)
Incubator: Nokia Corp. and Amazon.com Inc. will piggyback off a recent Ontario investment in autonomous-vehicle-technology to help develop a tech-demonstration facility in Hamilton showcasing urban-development innovations and the capabilities of 5G wireless networks. Story (Josh O’Kane, for subscribers)
Consolidator: After half a century under Desmarais-family control, Power Corp. of Canada wants investors to know it isn’t running out of steam – in fact, it’s planning a multibillion-dollar spending spree. Story (Jacqueline Nelson and Nicolas Van Praet, for subscribers)
Pot deal analysis: During a news conference to unveil his signature deal, the chief executive of Aurora Cannabis Inc. was hailed as a “pioneer and visionary” by his executive team. Yet, when he was asked a simple question by an analyst, to explain which metrics he used to value his $3.2-billion takeover of MedReleaf Corp., Terry Booth got a little tripped up. Story (Tim Kiladze, for subscribers)
Real estate sector: H&R real estate investment trust has reached a deal to sell 63 U.S. retail properties for US$633-million, slashing its exposure to the retail sector across dozens of American cities. Story (Rachelle Younglai)
Entertainment sector: DHX Media Ltd. is selling almost half of its stake in the Peanuts franchise to pay down debt, as the company struggles to reverse its fortunes amid an ongoing “strategic review.” Story (Tim Shufelt and Jeffrey Jones)
Hedge funds: For Talbot Babineau, chief executive of hedge fund IBV Capital Inc., hunting down long-term investing opportunities is far from easy these days. Story (Jeffrey Jones, for subscribers)
The Streetwise newsletter is Tuesday to Saturday. 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.