Hedge fund Paulson & Co has amassed a large stake in Allergan Inc of more than 6 million shares and supports a deal between the Botox maker and Valeant Pharmaceuticals Inc, Reuters reported. Valeant and its ally, Pershing Square Capital Management, are seeking to call a meeting to elect new directors to Allergan's board, which could pave the way for a takeover of the company. The Canadian drugmaker has taken its offer directly to Allergan shareholders after Allergan rejected its latest US$53 billion takeover bid.
The Canadian Transportation Agency has issued a "certificate of fitness" to Central Maine & Québec Railway Canada Inc for railway operations in this country that result from the purchase of Montréal Maine and Atlantic Railway Inc. Montréal Maine and Atlantic Railway was the company involved in the train derailment disaster in Lac-Mégantic, Québec in 2013. Driving the management of the new railroad business is U.S. private equity firm Fortress Investment Group, which won the rights to the assets of Montreal, Maine and Atlantic Railway and its Canadian affiliate in January.
Loral Space & Communications Inc's efforts to sell itself and its main asset, Telesat Holdings Inc, broke down after the company failed to agree on a potential US$7 billion deal with the buyer group, sources told Reuters. Loral rejected an offer from a consortium involving Ontario Teachers Pension Plan and another Telesat shareholder, Public Sector Pension Investment Board (PSP), which valued Loral at more US$80 per share. PSP, which has a 35.3 percent economic interest in Telesat and 66.7 percent of the voting power, was working with Teachers, which emerged as the preferred buyer after months of a sale process.
Alberta Investment Management Corp (AIMCo), the $80 billion provincial pension manager, is steering clear of investments tied to existing roads, bridges and transmission lines as their growing popularity squeezes returns, Reuters reported. AIMCo CEO Leo de Bever said the firm is pushing into late-stage venture capital and newly constructed infrastructure as it looks for above-market returns.
Valeant Pharmaceuticals Inc said on Tuesday it will launch an exchange offer for Allergan Inc this week, allowing it to eventually take the unsolicited bid directly to shareholders, Reuters reported. Botox-maker Allergan has rejected Valeant’s offer of cash and shares. Additionally, Allergan's biggest shareholder, Pershing Square Capital Management, intends to mail proxy materials to seek a special meeting later this year to change most of Allergan’s board, Valeant said.
Royal Bank of Canada's wealth management division, Canada's biggest player in the high net worth arena, is on the lookout for acquisitions to grow its presence in alternative assets, particularly real estate, and beef up U.S. distribution, Reuters reported. In the last six years, Toronto-based RBC has made two major acquisitions in the wealth management business, buying Phillips, Hager & North Investment Management Ltd in 2008 and BlueBay Asset Management Plc in 2010.
A TPG Capital Management-led consortium has agreed to buy the property arm of Australian engineering services firm UGL Ltd for A$1.215 billion (US$1.14 billion), a source told Reuters. UGL put the unit DTZ, a real estate services company, for sale to cut debt as its main engineering services division faces declining revenues due to a slowdown in the mining sector. TPG's consortium partners include Hong Kong private equity firm PAG Asia Capital and Ontario Teachers' Pension Plan.
Canadian exploration and production company Journey Energy Inc said on Friday it plans to raise $198 million via an initial public offering and secondary offering on the Toronto Stock Exchange, Reuters reported. The Calgary, Alberta-based company is selling 14 million shares from its treasury, while its principal shareholder PSP Investments is selling 2.5 million shares that it controls. PSP will continue to retain a stake of about 30 percent in the company following the close of the offer.
Coller Capital this week published its Coller Capital Global Barometer – Summer 2014, which surveyed 115 private equity investors globally. An interesting point in the survey is that a large portion of LP respondents said they would be willing to reset terms on an underperforming fund not likely to hit its preferred return.
The battle for botox maker Allergan Inc heated up as the company officially rejected a sweetened US$53 billion takeover offer from Valeant Pharmaceuticals International and activist investor William Ackman, Reuters reported. Since Canadian drugmaker Valeant and Pershing Square Capital Management made a joint bid for the company on April 22, Allergan has stood firm against entreaties to sit down at the table and negotiate a deal.