Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Last week’s leaks spoiled the surprise this morning when The Charles Schwab Corp. confirmed it’s buying TD Ameritrade in an all-stock deal valued at US$26 billion. Of most interest to us: the implications for the Toronto-Dominion Bank. It’s left with a 13 per cent stake in the combined entity, a new agreement with Schwab on insured deposits, and says the transaction will be “modestly accretive” to its earnings. Should point out when speculation about a deal started swirling, Analyst Gabriel Dechaine told clients a transaction could eventually make it easier for TD Bank to go shopping for deals in the U.S.

KIRKLAND BUYING DETOUR

Some consolidation in the Canadian gold mining sector this morning, with Kirkland Lake Gold agreeing to buy Detour Gold in an all-stock deal valued at $4.9 billion. Kirkland is touting the addition of the Detour Lake mine in Northern Ontario as a new “cornerstone asset” and sees the potential for up to US$100 million in annual cost savings. We’re expecting to speak with their CEOs in our Commodities program this morning. And it’s worth keeping in mind that it was just under a year ago that Detour was on the losing end of a proxy fight with Paulson & Co.

IN CONVERSATION WITH JIMMY PATTISON

Jon Erlichman has an interview this morning with the legendary Canadian entrepreneur, who says the environment is “the number one issue” at his multi-billion-dollar Pattison Group empire. But he also recognizes that the need to clean up his conglomerate — whose tentacles reach into the coal and plastics industries — has profound consequences for thousands of employees. Watch for that interview around 10:40 a.m. ET and at BNNBloomberg.ca.

CN RAIL STRIKE DRAGS ON

The walkout by approximately 3,200 CN Rail conductors and railyard workers is into the seventh day, still with no end in sight. A spokesperson for the Teamsters union told Paige Ellis the two sides are no closer to an agreement than when the strike started last Tuesday. Paige is gathering reaction and we’ll point out Pembina Pipeline sees an opportunity to rally goodwill for the energy industry, saying that “in the spirit of unity” it’s taking “swift action” to avert a propane shortage in Quebec.

OTHER NOTABLE STORIES

-We knew eBay was considering options for its StubHub business; today, it announced it will sell that unit to viagogo for US$4.05 billion in cash.

-Shares of Uber Technologies are sagging in pre-market trading after the company was told it will lose its licence to operate in London as a result of unauthorized drivers on the platform. Uber can continue operating pending an appeal. CEO Dara Khosrowshahi called the regulator’s decision “just wrong.”

-General Electric is hiring Moller-Maersk executive Carolina Dybeck Happe as its next CFO.

-LVMH has struck a friendly agreement to buy Tiffany & Co. for US$135/share (US$16.2 billion total deal value), and is touting the transaction as an opportunity to bulk up its jewelry business and expand in the U.S.

-As telegraphed, Organigram swung to an adjusted loss in its fourth quarter: $7.9 billion in negative EBITDA, to be precise. Some of the sting was taken out of the numbers as a result of the company’s warning on Nov. 11. We’re speaking with CEO Greg Engel on Commodities.

NOTABLE RELEASES/EVENTS

-Notable earnings: Organigram

-Notable data: Canadian wholesale trade

-9:00 a.m. ET: Home Capital Group holds investor day in Toronto

-12:00 p.m. ET: Teck Resources CEO Don Lindsay addresses Canadian Club in Toronto

-12:25 p.m. ET: Corus Entertainment CEO Doug Murphy addresses Economic Club in Toronto

-6:00 p.m. ET: Deputy Prime Minister Chrystia Freeland meets with Alberta Premier Jason Kenney in Edmonton

-7:00 p.m. ET: U.S. Federal Reserve Chair Jerome Powell delivers speech to Greater Providence Chamber of Commerce

Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.