Reuters News

Australia's Healthscope Ltd said it has extended exclusive takeover talks with suitor Brookfield Asset Management by a month, and that a rival suitor remained interested, potentially re-igniting a bidding war, Reuters reported. The private hospital operator has not yet committed to a binding A$4.5 billion (US$3.2 billion) offer from the Canadian investment firm. Healthscope also said rival bidder BGH Capital and its partners, which reportedly include Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, were prepared to commence due diligence even though their A$2.36 per share indicative offer was rejected as “less attractive”.

Warren Buffett is getting out of the Canadian mortgage business after a nifty trade that helped a company that had been on the ropes, Reuters reported. Buffett’s Berkshire Hathaway Inc is “substantially” exiting its stake in Home Capital Group Inc after selling shares back to the company, the mortgage lender and Buffett said. Berkshire bought a 20 percent stake in Home Capital last year and extended a $2 billion credit line after the company suffered a deposit exodus after being accused of, and then admitting to, concealing mortgage fraud. Berkshire could see a profit of more than 70 percent for the shares it bought for about $9.55 apiece and sold back at $16.50 per share.

Canadian mining private equity firm Waterton Global Resource Management has urged Hudbay Minerals Inc to replace its CEO and said it would nominate several candidates to the miner’s board, Reuters reported. Waterton, which raised its stake in the company to nearly 10 percent from 7 percent, also reiterated that the Toronto-based miner avoid any near-term acquisition or joint venture. Hudbay, which said in October it would buy the remaining 86 percent of Canadian miner Mason Resources Corp, is in talks to buy Chilean miner Mantos Copper SA, according to media reports.

L Brands said it would to sell its luxury lingerie brand La Senza to an affiliate of U.S. private equity firm Regent LP, capping a months long effort to sell the loss-making business, Reuters reported. The company has been facing stiff competition, forcing it to sell its non-core assets and focus on brands such as Victoria’s Secret and Bath & Body Works. As part of the deal, Regent would assume La Senza’s liabilities and would have to pay L Brands if it sells or monetizes any part of the brand. L Brands bought Canadian chain La Senza for about US$700 million in 2007 and expects it to incur an operating loss of US$40 million in the year.

Brazil’s state-controlled oil company Petróleo Brasileiro (Petrobras) could present a new sale and purchase agreement before the end of December for the sale of the Transportadora Associada de Gás (TAG) pipeline, after a Brazilian Supreme Court injunction in July stalled the sale, Reuters reported. The sale of TAG, which operates natural gas pipelines in Brazil, could fetch Petrobras as much as US$7 billion. A consortium comprising Engie and Caisse de dépôt et placement du Québec were in talks with Petrobras to buy TAG before the injunction. A group comprising EIG Global Energy Partners and Mubadala, and a second team made up of Macquarie, Canada Pension Plan Investment Board and GIC, previously expressed an interest.