Globe says Barrick, others show deal making is back
2009-09-14 07:26 ET - In the News
See In the News (C-ABX) Barrick Gold Corp
The Globe and Mail reports in its Saturday edition that deal making is back. The Globe's Boyd Erman and Tara Perkins write revitalized capital markets allowed a sudden burst of major financings last week, on top of continued rallies in equity and debt markets. Canadian companies, led by Barrick Gold and Fairfax Financial, raised nearly $5.9-billion by selling stock -- more than in any other week in history. Thanks to a receptive credit market, energy giant EnCana revived its plan to split into two companies, which requires $5-billion in loans.
Long-dead initial public offerings are once again doable, with Montreal retailer Dollarama filing to go public in a transaction expected to raise $250-million. The corporate financing resurgence has a more sober, purposeful tone compared with the capital casino that underpinned the credit bubble.
Compton Petroleum raised $172-million Friday. The flurry of deals is not likely to end soon, said Paul Donnelly at Macquarie Capital Markets. "I don't think the pipeline is exhausted for a second," Mr. Donnelly said.
However, for now stock sales will mostly be of a relatively low-risk variety designed to appeal to investors who are still wary after being once burned.