Merger Monday was a holiday in Canada, but Tuesday morning comes with plenty to talk about, including the post-game reports on Tye Burt's African play at Kinross Gold, as well as some big acquisition news from British banking and Australian coal mining.
Kinross spends $7.1-billion on Red Back
Kinross Gold's acquisitive chief executive officer Tye Burt is spending $7.1-billion (U.S.) on Red Back Mining in a friendly to increase his company's current production by roughly 25 per cent, and he's also gaining significant exposure to Africa to broaden out Kinross's growth prospects. With a Kinross toehold approaching 10 per cent and, another 4.6 per cent of the shares locked up and a $250-million break fee, it will be costly for any rivals to try to trump the deal. Here's the press release.
For those keeping score, BMO Nesbitt Burns, GMP Securities and N M Rothschild & Sons are advising Kinross on the financial side, with BMO as "senior financial adviser," while Osler, Hoskin & Harcourt is providing legal advice. Morgan Stanley provided a fairness opinion.
Scotia Capital is financial advisor to Red Back, with Blake, Cassels & Graydon LLP on the legal side.
The acquisition brings to $32-billion the total value of gold industry mergers and acquisitions this year, according to Bloomberg News in this look at the landscape, and BMO is leading the pack.
Playing on both sides of the street
The Wall Street Journal takes a sharp look at how firms played both sides of the mortgage market, with Deutsche Bank in the spotlight.
Lionsgate to Icahn: Take off, eh!
The board of film producer Lionsgate has rebuffed Carl Icahn yet again, this time saying his $6.50 a share offer for the company "is not in the best interests of Lionsgate and its shareholders and other stakeholders. The Board strongly recommends that Lionsgate shareholders not tender their shares into the Icahn Group's offer." Lionsgate's pitch to shareholders is essentially, stay tuned, given the slate of big movies (The Expendables) and top TV series (Weeds, Mad Men) the firm has coming this release season.
Here's the full Lionsgate filing.
At last, the Spanish to invade England
Canada's banks get a lot of press for their solidity, but the top Spanish banks came through the crisis pretty well and they are using that strength to get bigger.
A report in the Financial Times has Spain's Santander set to buy about 320 branches from Royal Bank of Scotland. The price is expected to be in the £2-billion range, with Santander the sole bidder.
Indian coal importer buys coal assets
The trend to big commodity users in emerging economies locking up supplies with acquisitions is not limited to Canada. India's biggest coal importer is spending $2.7-billion to buy an Australian coal asset, the largest ever acquisition by an Indian company in Australia.