There's little preventing more momentum in oil patch deal making following a brisk couple of months, says one senior investment banker.
A gusher of merger and acquisition activity as well as equity issues have accompanied the recent strengthening of oil and gas prices. Companies that had made prudent moves to protect their finances through the downturn are now finding receptive capital markets, said Shane Fildes, head of Bank of Montreal's global energy group.
Equity markets have rallied from their deep lows of last winter, and expectations are that oil and gas prices will keep climbing slowly through the year, pulling stocks with them, Mr. Fildes said in an interview. Meanwhile, credit markets, which tend to be more backward looking, remain jittery about financial risk in the sector and are pushing weaker players to sell assets.
"That is creating a lot of transaction momentum, and the reason for that is that people are asking what they have to do to put their business on the right footing, given that the liquidity situation is becoming clearer," he said. "And the buyer universe is becoming more confident in its ability to raise capital to do transactions." Story
ON THE MOVE
Dundee Capital Markets Inc. has snatched one of Canaccord's most senior traders, as it prepares to go it alone as a standalone independent brokerage.
Paul Kilfoy, a managing director in sales and trading with Canaccord, who covered financials, tendered his resignation on Friday. Story
WEEKEND DEALS
Liberty House, founded by Sanjeev Gupta, has its eye on Essar Steel Algoma and U.S. Steel Canada, the Financial Times reported. Story
Enbridge and Macquarie are vying for a 49.9-per-cent stake in EnBW's $2.2-billion offshore wind park project, Reuters reported. Story
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