McCreath: The amount of negative yield debt climbs again
Inter Pipeline has called off its friendly takeover arrangement with Pembina Pipeline with just three days to go before shareholders were set to vote on that transaction. The move comes after Brookfield Infrastructure Partners L.P. recently sweetened its hostile offer for the pipeline operator, but Inter Pipeline isn’t ready to formally throw its support behind Brookfield just yet. We’ll gather insight on what it will take for those two parties to clinch a deal, and will also consider what plan b could be for Pembina, which made it clear this morning that it’s open to other M&A opportunities.
It’s shaping up to be a weak open for North American stocks after Friday’s records for S&P 500, Nasdaq and the Dow Industrials. The real action we’re seeing today though is in Asia, where Beijing’s crackdown on money flowing through the private education sector triggered a cascade of selling pressure on the Shanghai Composite Index and other major indices.
The world’s best known cryptocurrency surged as much as 15 per cent overnight on no single news catalyst, at least that I’ve seen. It could be a big week though for Bitcoin in the corporate world, with Tesla reporting after hours today and amid speculation that Amazon could start dabbling in cryptocurrency. Perspective here is important: Bitcoin is still sitting almost 40 per cent below its April peak.
FORMER TOP CANNTRUST INSIDERS IN COURT
Ex-CEO Peter Aceto, as well as former directors Eric Paul and Mark Litwin are scheduled to appear at an Ontario Court of Justice hearing today to face fraud and other quasi-criminal charges stemming from the pot producer’s unlicensed production scandal. As it turned out, it was purely procedural. Counsel needs more time to look at evidence. So the hearing will be picked up on Sep. 20. The company, for its part, is still cleaning up the mess that was left behind and recently had its CCAA restructuring plan approved though there’s no certainty about whether its common shares will ever be listed again. David George-Cosh will of course track all developments.
OTHER NOTABLE STORIES
- Pieridae Energy has put itself up for sale with today’s announcement of a formal strategic review process. This comes a few weeks after Pieridae announced a strategic review of its Goldboro LNG project.
- As telegraphed last week, approximately 900 Rio Tinto workers in Kitimat, B.C. walked off the job yesterday at the company’s aluminum smelting plant.
- Notable data: StatsCan monthly estimate of business openings and closures, U.S. new home sales
- Notable earnings: Allied Properties REIT, TFI International, Tesla
- 11:00: Ontario Court of Justice hearing on charges against ex-CannTrust directors/execs
- 11:00: Ceremony to install Mary Simon as governor general