A roundup of some of the North American equities making moves in both directions today
On the rise
Boeing Co. (BA-N) rose 2.9 per cent on Monday after firing Chief Executive Officer Dennis Muilenburg, following a year of intense scrutiny and industrial setbacks set off by twin fatal crashes of its 737 MAX jetliner.
The management shakeup comes as the world’s largest planemaker struggles to win regulatory approvals for its grounded best-selling jetliner while trying to regain trust with passengers and airline customers.
Chairman David Calhoun will take over as CEO and president, effective Jan. 13, the company said, adding that a change in leadership was necessary to restore confidence in the company.
See also: Continued stumbles by CEO Dennis Muilenburg deepen the crisis at Boeing
Bombardier Inc. (BBD-B-T) was 0.5 per cent higher after it said on Monday its newest business jets, Global 5500 and 6500, received U.S. Federal Aviation Administration certification, clearing the way for the Canadian plane maker to start deliveries.
The 5500 and 6500 aircraft are upgraded versions of the Global 5000 and 6000 jets and had already received certifications from the Canadian and European authorities earlier this year.
The new jets come with a top speed of Mach 0.90, are more fuel efficient and can seat up to 17 passengers, Bombardier said.
Tesla Inc. (TSLA-Q) rose 3.3 per cent after the electric vehicle maker and a group of China banks agreed to a new 10 billion yuan (US$1.4-billion), five-year loan facility for the automaker’s Shanghai car plant.
China Construction Bank, Agricultural Bank of China (AgBank), Industrial and Commercial Bank of China (ICBC) and Shanghai Pudong Development Bank are among the banks which have agreed to give Tesla the financial support, one source with direct knowledge said.
The Chinese banks earlier this year already offered Tesla a 12-month facility of up to 3.5 billion yuan, which is due to be repaid on March 4, 2020, according to a filing the automaker made to the U.S. Securities and Exchange Commission.
See also: Tesla shares inch closer to Elon Musk’s $420 take-private offer
SEMAFO Inc. (SMF-T) closed flat after announcing an amended agreement with Macquarie Bank Ltd. before the bell.
“Macquarie has been our sole lender and an excellent partner through this difficult time. I would like to thank them for their support as we work towards a restart plan at Boungou and ramping up to full production at Siou underground at the end of the first quarter of 2020," said president and CEO Benoit Desormeaux in a release.
See also: West Africa risks in focus for Canadian miners after deadly attack on Semafo
Houston-based Apache Corp. (APA-N) jumped almost 17.5 per cent after the oil and gas producer along with French rival Total said the companies have formed a joint venture to develop a project off Suriname in a deal that gives the struggling company a cash injection for more exploration, the companies said.
Apache’s Suriname offshore prospect near the border with South America’s newest oil giant, Guyana, is a long-shot for the struggling U.S. company.
Brookfield Infrastructure Partners LP (BIP-UN-T, BIP-N) increased 1.5 per cent after announcing before the bell it will buy telecommunications company Cincinnati Bell Inc for about US$529.42 million.
Under the deal, Cincinnati Bell shareholders will receive US$10.50 per share, representing a premium of 36-per-cent to the company’s Friday closing price.
Including debt, the deal is valued at US$2.6-billion.
Chinese e-commerce company JD.com Inc. (JD-Q) was up 2.7 per cent on a Reuters report that its logistics unit has held early discussions with banks about a potential overseas IPO that could raise US$8-billion to US$10-billion.
JD Logistics is targeting a valuation of at least US$30-billion, according to the people, who declined to be named as the information is confidential.
The unit is expected to select banks for the initial public offering (IPO) in the second quarter of next year and will use the funds for warehouse expansion and potential acquisition purposes, one person said.
U.S. asset manager BlackRock Inc. (BLK-N) rose narrowly on a report that it has agreed to set up a wealth management joint venture in China with Singapore state investor Temasek Holdings (Pte) Ltd and China Construction Bank Corp (CCB).
A memorandum of understanding has been announced internally within BlackRock and CCB , according to the people and an internal notice seen by Reuters.
The deal comes as China’s government continues to open up its financial industry to foreign firms. On Friday, French asset manager Amundi SA said it had won approval to establish a majority-owned wealth management venture with a unit of Bank of China Ltd .
Chinese banks’ wealth management subsidiaries have broad business capacity including launching publicly-offered products, so they are attractive to international asset managers, said Yin Ge, partner at Han Kun Law Offices in Shanghai.
On the decline
Aurora Cannabis Inc. (ACB-T) dropped 10.2 per cent with the announcement of the departure of chief corporate officer Cam Battley.
Mr. Battley joined Aurora in 2016 and quickly became the company’s public face, often handling media interviews and answering questions from analysts about the cannabis producer’s strategy. Mr. Battley had also been one of the industry’s most vocal optimists, often touting how much potential there was to expand.
- Tim Kiladze
CI Financial Corp. (CIX-T) dipped 0.7 per cent with the purchase of a majority stake in California-based One Capital, an investment-advisory company with a division serving professional athletes and entertainers.
One Capital, which manages US$1.6-billion in client assets, is the second U.S. registered investment adviser (RIA) that CI has acquired in recent weeks. Founded by Donald MacDonald – a Canadian who was also a founding member of Loring Ward Investment Counsel (Canada), which later become Assante Wealth Management – One Capital specializes in managing money for high-net-worth individuals and families.
The deal falls in line with CI’s plan, recently announced by new chief executive Kurt MacAlpine, to build a presence in the RIA market.
- Clare O’Hara
Bellus Health Inc. (BLU-T) was down 1.2 per cent after filing for a stock shelf of up to US$200-million, according to a U.S. Securities and Exchange Commission filing.
With files from wires and staff
David Leeder