On Friday Frank Stronach got his way, Kinross Gold made money off diamonds and the market learned European banks are in decent shape.
After all the fuss surrounding Frank Stronach selling control of his voting shares in Magna International Inc., the founder finally got his $970-million payout in cash and shares. With that, Magna will no longer have a dual-class structure. Around 75 per cent of class A shares voted in support of the payout, even though big funds such as Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan opposed it.
Kinross sold its 9 per cent ownership of the Northwest Territories' Diavik diamond mine back to Harry Winston Diamond Corp. for $220-million (U.S.). The diamond miner, which now owns 40 per cent of the mine in total, sold off a portion of its position in March, 2009, because of debt problems and suppressed diamond prices. Kinross also sold around 15 million shares of Harry Winston for about $13 (Canadian) each. The shares were purchased last year for $3 (U.S.). Quite the return.
European bank stress test results came out Friday and seven institutions didn't make the cut. Now they'll need to raise €3.5-billion ($4.5-billion) in total to shore up their finances, according to the Committee of European Banking Supervisors. Some say the tests may not be tough enough, but the same was also said about the successful U.S. stress tests last year.