Streetwise newsletter: Kinder Morgan sells shares for Trans Mountain plan; Laurentian looks to calm markets over mortgage gaffe

Kinder Morgan Canada Ltd. is selling $200-million in shares even as the company dials back spending and warns of additional delays to its marquee Trans Mountain pipeline expansion. (Jeff Lewis)

Laurentian Bank of Canada is trying to calm jittery investors, suggesting shareholders overreacted when they sent its share price tumbling after the bank disclosed problems with some mortgages it issued. (James Bradshaw)

One of Canada’s unheralded software success stories, Ottawa-based Titus Inc., is selling a majority ownership stake to U.S. private equity giant Blackstone Group LP. Story (Sean Silcoff, for subscribers)

If it was only about the money, Rogers Communications Inc. would have sold off high-profile holdings such as baseball’s Toronto Blue Jays years ago. (Andrew Willis, for subscribers)

FROM FINANCIAL SERVICES

Europe’s largest development bank, the EIB, has laid out plans for a new subsidiary focussed solely on non-EU projects that it hopes could also keep some of Britain’s billions in the bank after Brexit, European Union sources said.

Hedge fund TCI has suffered a setback in its campaign to oust the chairman of the London Stock Exchange Group PLC after influential advisory group Institutional Shareholder Services recommended that investors vote against the activist’s proposal.

A moratorium on loans for energy pipeline projects has been lifted, Desjardins Group said Wednesday, as it vowed to consider environmental, social and governance practices of clients in all future lending decisions.

DEAL WRAP

NOVACAP has acquired Joseph Ribkoff, one of Canada’s leading fashion designers, present in more than 64 international markets. The investment represents NOVACAP’s first foray into the women’s ready-to-wear sector.

Britain’s competition watchdog will give its initial verdict on Rupert Murdoch’s bid to buy Sky next month, later than expected, due to the vast number of responses it has received on the deal.

Fetch Robotics, a Silicon Valley startup that’s bringing robots and a supporting cloud-based software system to industrial environments, has raised $25 million (U.S.) in a series B round of funding led by Sway Ventures, with participation from O’Reilly AlphaTech Ventures, Shasta Ventures, and SoftBank’s SB Group US.

WHAT WE’RE READING

Free trade talks between Canada and China may have yet to achieve lift off. Tell that to technology sector. China tech giants including Tencent Holdings Ltd. and Huawei Technologies Co. are boosting investment in Canadian companies with exposure to everything from electric vehicles to artificial intelligence, attracted by the country’s swelling ranks of science and technology graduates, valuations that are cheaper than the U.S., and government enticements.

The European Union’s MiFID II law that takes effect next month is expected to drive a significant, rapid shift in trading of bonds and derivatives to electronic and other trading venues. A Deloitte survey of a dozen buy-side firms showed the law will lead to a decline in private, over-the-counter, trading in many common contracts.

IN CASE YOU MISSED IT

It’s a good year to be a Canadian banker. The country’s six biggest lenders set aside $14.3-billion for variable compensation – up 11 per cent from 2016 – as a record year in trading and investment banking swelled bonus pools. That’s the biggest jump since 2014 and stands in contrast to last year, when a 3.4 per cent increase was the lowest since 2010.

AngloSwiss mining giant Glencore PLC has struck a deal with the Ontario Teachers’ Pension Plan to create a private royalty and streaming business – one of the first of its kind in the base metals sector. (Niall McGee, for subscribers)

Courtesy: The Globe And Mail

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