Here are the top reads on deals and financial services over the last 24 hours:
Activists nominate five directors to TransAlta board in bid to derail Brookfield investment: The activist investors who’ve bought into TransAlta Corp. are nominating five directors to the company’s board so they can have the ability to kill an investment in the company by Brookfield Renewable Partners LP. TransAlta announced the $750-million Brookfield investment Monday, arguing that the cash injection could accelerate its move to renewable energy and allow for a share buyback that would return capital to stockholders. Three new directors, including two top Brookfield executives, would join TransAlta’s board. Story (David Milstead, for subscribers)
A storm is brewing at Richardson GMP: Wealth manager Richardson GMP is a dormant volcano these days, with only the occasional puff of smoke in the form of a few employee departures signalling the pressure building within a firm that manages $27.4-billion. For the Toronto-based company’s 166 financial advisers and their clients, the question is whether Richardson GMP resolves its internal tensions in one explosive event or a prolonged quiet venting of talent. This business is either going to get sold or see an increasing number of its top performers head out the door. Story (Andrew Willis, for subscribers)
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Newmont says proxy advisory firm ISS recommends shareholders vote in favour of Goldcorp deal: Newmont Mining Corp. says proxy advisory firm Institutional Shareholder Services Inc. has recommended shareholders vote in favour of the gold miner’s acquisition of Goldcorp Inc. The company says the report found a vote in favour of the deal was warranted given what it called a solid strategic rationale and expected financial benefits, which are bolstered by the recent addition of a special dividend. Story (The Canadian Press, for subscribers)
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Former Amaya CEO sues Quebec securities regulator for $2-million: The former head of online poker giant Amaya has launched a $2-million lawsuit against Quebec’s securities regulator stemming from its unsuccessful insider trading lawsuit. David Baazov alleges in a case filed last week in Quebec Superior Court that L’Autorite des marches financiers (AMF) was “abusive” and “malicious” in filing accusations against him in 2016. Story (The Canadian Press)
Don’t be so dismissive of The Big Short’s bet against the Canadian banks: U.S. hedge fund manager Steve Eisman became famous through his depiction in Michael Lewis’s financial crisis book, The Big Short, which detailed the manager’s successful shorting of markets before the crisis hit. Mr. Eisman is now infamous in Canadian investing circles after reports, initially in the Financial Times, said he has built short positions against Canadian bank stocks. Bank of Montreal is a potential target for one of the short positions (Mr. Eisman would not comment on specific stocks) so it might be surprising that BMO economist Robert Kavcic recognizes the validity of the trade, writing, “it actually isn’t that over the top, calling for slower economic growth and normalizing credit conditions. We’d actually agree on both counts.” Story (Scott Barlow, for subscribers)
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