A pumpjack pumps oil from a well on a farmer's frozen field in a Pembina oil field near Pigeon Lake, Alta., in 2012.Norm Betts/Bloomberg
DEAL OF THE DAY:
Winnipeg bus maker buys U.S. competitor for $455-million
Winnipeg-based bus manufacturing company New Flyer Industries Inc. announced it is purchasing American competitor Motor Coach Industries for $455-million (U.S.) in cash from private equity company KPS Capital Partners.
Illinois-based Motor Coach is a well-known name in coaches. New Flyer, meantime, specializes in making transit buses. New Flyer also announced it had secured $825-million in new loans to help pay for the acquisition.
Shares in New Flyer, which trade on the Toronto Stock Exchange, rose more than 10 per cent following the announcement of the deal. Press release
FINANCINGS
Pembina's $400-million bought deal
After the bell on Tuesday, Pembina Pipeline Corp. announced it had raised $400-million in a bought financing deal.
The Calgary-based pipeline company is issuing 13.3 million new shares at $30 apiece. Pembina closed at $31.36 on Tuesday so investors are being offered stock at a discount of just over 4 per cent.
Pembina has earmarked the funds for a number of purposes, including capital expenditure and paying back debt. Press release
MERGERS AND ACQUISITIONS
Quebec-based Intertape Polymer targeted by activists
Two U.S. hedge funds are agitating for change at Intertape Polymer Group Inc., in an attempt to boost the stock price of the Montreal-based packaging products manufacturer.
Zelman Capital LLC and Four Capital Group LLC own 6.5 per cent of Intertape Polymer and made a series of recommendations in a letter sent to Gregory Yull, the chief executive officer, which was publicly released early Tuesday.
"We believe that IPG's shares are worth approximately $23 per share, representing upside of 52 per cent to the current market price."
"Additionally, we strongly believe that IPG is a highly sought-after strategic asset that would garner a significant premium from either a strategic buyer or private equity sponsor with a pre-existing portfolio company within the packaging space," they wrote in the letter.
Some of the suggestions that the activists are putting forward include ramping up its stock buyback program and bringing on new board members with packaging industry experience.
Intertape shares rose 9 per cent on Tuesday to close at $16.56 a share on the Toronto Stock Exchange. Story
U.S. private equity firm sells Lions Gate stake
New York-based private equity firm MHR Fund Management LLC is selling a stake worth $390-million (U.S.) in movie studio Lions Gate Entertainment Corp. to a consortium of cable companies including Liberty Global and Discovery Communications Inc. Press release
BAY STREET MOVES
TD shakes up senior brass
Toronto-Dominion Bank announced a major management shuffle on Tuesday.
Tim Hockey, group head of Canadian banking and wealth, will become president of TD Ameritrade Holding Corp., the online brokerage, at the start of 2016.
Teri Currie, group head of direct channels who oversaw much of the bank's shift into online and mobile banking, will step into Mr. Hockey's role, becoming group head of Canadian personal banking.
Colleen Johnston, TD's chief financial officer, will take over for Ms. Currie, but relinquish the CFO job to Riaz Ahmed.
The management shakeup at TD follows significant cost-cutting efforts as the bank attempts to align its expenses with slowing revenue growth. Story
INSIGHT
Departing TD executive Tim Hockey built a profit powerhouse
Few bank executive departures will make heads turn as much as Tim Hockey's from Toronto-Dominion Bank. The man helped build a profit powerhouse.
Since he became a group head in 2008, Mr. Hockey was constantly given more responsibility, including insurance in 2010 and wealth management in 2013.
In 2008, the year he became head of Canadian banking, the unit made $2.4-billion. In 2013, the year before wealth was wrapped into this business, Canadian banking made $3.8-billion. Story
Howard Wetston reveals secret to being a good watchdog
Five years running the OSC gradually made Howard Wetston more tight-lipped, but last week he sat for an unfiltered pre-retirement interview with Globe reporter Tim Kiladze, offering a candid take on what it takes to be a successful regulator.
The first rule: "You have to have a high tolerance for frustration." Canada has a patchwork quilt of regulators – 13 different provincial and territorial securities bodies, a separate banking body in Ottawa, as well as individual industry groups such as the Mutual Funds Dealer's Association, among others. In public, these regulators often say they happily work together; in private, they admit there are far too many territorial games. Story
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