Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Couche-Tard agrees to buy CST Brands 

Alimentation Couche-Tard has done it again. The convenience store operator has agreed to buy CST Brands for US$4.4 billion, including debt. The deal was expected after rampant speculation last week. The first order of business this morning is to assess the integration process and competition considerations. To that point, Couche-Tard has agreed to sell some Canadian CST assets to Parkland Fuel for US$750 million. Couche-Tard expects the transaction will close early next year, and it will be financed with cash on hand, existing credit facilities and a new term loan.  Couche-Tard will host a call with analysts at 8:30 a.m. ET and media at 11:00 a.m. ET. 

CP derailment debrief 

The train has been cleared, but questions will undoubtedly remain – among local residents, if nothing else – about the CP derailment in a densely populated residential area just outside Toronto’s downtown core. CP believes the accident, which followed a collision between two trains, was caused by human error. “Eight car bodies derailed on the eastbound train, and both westbound locomotives derailed,” said TSB spokesperson Chris Krespi. The local fire department estimates 1,100 litres of diesel fuel leaked (was subsequently contained).  CP says one car involved in the incident was carrying goods that qualify as dangerous, including batteries and aerosols.  Local city councillor Mike Layton is acknowledging rail safety fears on the back of the incident, and Mayor John Tory is also expressing his concern. 

Valeant hires new CFO

Valeant’s front-office overhaul continues, with the drugmaker today announcing it has hired Paul Herendeen as its new CFO.  Herendeen was previously CFO at Zoetis. Bill Ackman’s Pershing Square is a top shareholder at the animal drugmaker.  Pershing is a top shareholder at Valeant.  Ackman sits on Valeant’s board.  Observers will draw their own conclusions. 

Outgoing CFO Robert Rosiello is by no means being thrown under the bus.  He’s sticking around as an EVP and head of corporate development and strategy.  "I consider Rob Rosiello a trusted colleague," CEO Joseph Papa said in a statement. "Rob's integrity, work ethic and business acumen will be assets as we further develop our strategies to improve people's lives with our healthcare products."  

Fischer implies rate hike could be drawing near 

The U.S. Federal Reserve’s second-in-command fanned speculation over when the central bank will raise yesterday. “We are close to our targets” Fed Vice-Chair Stanley Fischer said during a speech in Aspen. He acknowledged inflation is still running short of target, but noted prices as measured by core PCE are “within hailing distance” of two per cent.  Fischer also said monetary policy shouldn’t be counted on to solve America’s “exceptionally slow” productivity growth. 

Pfizer strikes another deal 

Ian Read’s appetite for M&A is alive and well. The CEO of Pfizer has struck a US$14-billion agreement to buy Medivation, a San Francisco-based biotech company focused on oncology. Read says the deal is “another example of how we are effectively deploying our capital to generate attractive returns and create shareholder value.” The takeover value, of course, is dwarfed by Read’s proposed tax inversion deals that were never consummated amid political objections. 

Releases/events:

-10:30 a.m. ET: Conservative Party Leadership Candidate Maxime Bernier announcement re. interprovincial trade

-1400 ET: Justin Trudeau speaks to the media in Sudbury 

Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Today's note was written by BNN's Managing Editor Noah Zivitz. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.