Here are the top reads on deals and financial services over the last week. Have a great weekend.
CIBC CEO Victor Dodig’s vision: When Victor Dodig emerged as a dark-horse candidate to win the top job in 2014, Bay Street greeted him as a breath of fresh air. After four years under Mr. Dodig’s watch, however, a crucial question remains: When will his strategy move the needle for CIBC’s weary shareholders? Story (James Bradshaw, for subscribers)
Congo warns it will ‘assert its rights’ over Randgold project in wake of Barrick deal: Barrick Gold Corp., embarking on an ambitious takeover of Africa-focused gold miner Randgold Resources Ltd., has been given two fresh reminders of the potential risks of doing business in Africa in an era of resource nationalism. Story (Geoffrey York, for subscribers)
Ruffolo leaves OMERS Ventures after ‘unparalleled’ run: Venture capital investor and Canadian technology cheerleader John Ruffolo is leaving one of the country’s largest pension plans, the Ontario Municipal Employees Retirement System. Mr. Ruffolo launched OMERS Ventures, an arm of the $95-billion OMERS fund, in 2011 and put capital into start-up tech companies at a time when the venture capital sector was in retrenchment mode following the collapse of Nortel Networks Corp. On his watch as CEO, OMERS Ventures built an $800-million portfolio with investments in approximately 30 tech companies. Mr. Ruffolo forged a reputation as the face of the industry, bringing other institutional investors into the sector and appearing frequently in media and at industry conferences. Story (Andrew Willis and Sean Silcoff, for subscribers)
Why earnings calls are useless—and how we can fix them: When Tesla CEO Elon Musk repeatedly flew off the handle during a quarterly conference call with financial analysts last May, he exposed major problems with those sessions. Musk said his executives would spend extra time answering questions—provided the questions were good ones. Such a proviso might suggest a willingness to be more transparent with investors, but that’s not what he meant. ROB Magazine (Rita Trichur, for subscribers)
‘We were dying’: Inside the scramble to overhaul Investors Group: Since taking over the wealth management giant, Jeff Carney has slashed fees, fired more than 1,000 people and changed its name. Will his bold strategy pay off? ROB Magazine (Tim Kiladze, for subscribers)
Barrick independent director Nancy Lockhart resigned before Randgold takeover was announced: Barrick Gold Corp. independent director Nancy Lockhart resigned before the company announced its US$6-billion takeover of African miner Randgold Resources Ltd. Ms. Lockhart had been a board member since 2014 and was also chair of Barrick’s corporate responsibility committee. On Monday, when Barrick unveiled the Randgold acquisition, Ms. Lockhart wasn’t included in a regulatory document listing Barrick’s 13 remaining directors, all of whom voted in favour of the deal. Story (Niall McGee and Rachelle Younglai, for subscribers)
Despite changes, mutual-fund investors still aren’t clear on how much they pay for advice: The number of mutual-fund investors who believe they pay a direct fee to their investment adviser remains low despite regulatory changes intended to improve transparency in compensation. In an annual survey released on Thursday, 72 per cent of mutual-fund investors said they were confident that they understand the fees they pay for mutual funds, a statistic that has held relatively steady since 2011. Story (Clare O’Hara, for subscribers)
AGF’s Blake Goldring hands reins to Kevin McCreadie: For the first time in its 61-year history, mutual fund company AGF Management Ltd. will not be run by someone named Goldring. Toronto-based AGF, which oversees $39-billion, announced on Wednesday that president and chief investment officer Kevin McCreadie will become chief executive on Dec. 1, succeeding Blake Goldring, who took the reins 18 years ago at the firm his father founded in 1957. Story (Andrew Willis, for subscribers)
Richard Nesbitt to step away from Global Risk Institute: Bay Street veteran Richard Nesbitt is retiring as chief executive officer of the Global Risk Institute in Financial Services, a Toronto-based non-profit focused on research and education in risk management. Story (James Bradshaw, for subscribers)
AltaGas debt worries remain despite IPO plans: AltaGas Ltd. has struggled to allay investor fears about its debt since it bought Washington’s gas-distribution franchise. Its plans for an initial public offering of some of its Canadian assets have not put worries to rest. It’s turning into a referendum on the ability of the management to get the Calgary-based company’s financial house back in shape after an acquisition that’s reshaped the operation. An IPO, rather than straight asset sales, adds a new element of risk. Opinion (Jeffrey Jones, for subscribers)
Climate resilience must be part of every government’s agenda: This year, the World Economic Forum ranked climate change and its effects as the biggest risk facing the world. This reality demands both our immediate action and a long-term plan. Collectively, we are too reactive to the effects of climate change. We must apply greater urgency to implement the most important steps to take now to protect us in the future. Opinion (Charles Brindamour, chief executive of Intact Financial Corp., and Dean Connor, president and CEO of Sun Life Financial Inc.)
Catalyst-West Face battle heats up ahead of investor meetings: Financier Newton Glassman fired a legal salvo at rivals and filed paperwork for a long-promised sale of its casino business on Tuesday, ahead of an annual meeting of investors in his private equity fund, Catalyst Capital Group Inc. Story (for subscribers)
Ford government decision is a step backward for investor protection: Ontario Securities Commission recently published a proposed rule banning certain commissions to dealers on mutual fund sales. The rule was not just Ontario’s initiative – it was a joint effort by members of the Canadian Securities Administrators (CSA), which consists of regulators from all provinces and territories. After months of discussions, which included the consideration of empirical data, the CSA finally agreed on the need to restrict certain commissions, with each of its members agreeing to implement the rule in its home province or territory. Opinion (Anita Anand)
U.S. cannabis firms eye market debut in Canada: At least a dozen cannabis companies that operate in the United States are preparing to go public on Canadian stock exchanges, backed by local investment banks and law firms that have been hired to help them tap the market. Story (Andrew Willis and Christina Pellegrini, for subscribers)
Sobeys parent looks to beef up with $800-million acquisition of Ontario grocery chain Farm Boy: The parent company of Sobeys Inc. has agreed to acquire Ontario grocery chain Farm Boy in an $800-million deal that aims to beef up its business in fast-growing cities and suburbs. Story (Marina Strauss, for subscribers)
RBC issues first bail-in debt bond: Royal Bank of Canada has set the bar for bail-in debt, issuing the first in a new class of bonds intended to keep taxpayers from having to bail out distressed banks in the event of a crisis. Story (James Bradshaw, for subscribers)
BREAKING DOWN BARRICK’S BIG DEAL
Barrick swallows Randgold in deal creating $18.3-billion gold mining giant: Barrick Gold is swallowing African operator Randgold Resources in a takeover worth roughly US$6-billion that will ensure its status as the world’s biggest gold company, and bring in a chief executive officer for the first time since 2014. Story (Eric Reguly and Niall McGee, for subscribers)
If takeovers such as Barrick’s make so much sense, why are they so rare?: It is the type of deal even merger skeptics can applaud. Without coughing up any cash, and without offering a takeover premium, Barrick Gold Corp. wants to merge with Randgold Resources Ltd. Miraculously, Randgold, a rare gem in the gold sector, has agreed to the terms. Story (Tim Kiladze, for subscribers)
With Randgold deal, Barrick looks to trim the rest of its fat: It’s a US$6-billion gold mining deal with seemingly no synergies. Usually when a large takeover is unveiled, the acquirer will try to sell the deal to its shareholder base by talking up “synergies” – management speak for cost-cutting. But such talk was absent from both the regulatory documents released with the announcement and presentations of both Barrick Gold Corp. and Randgold Resources Ltd. during two separate, hour-long conference calls on Monday. Story (Niall McGee, for subscribers)
The gold sector struggles to attract investors, despite Barrick’s big promise: Even the most optimistic investors looking at Barrick Gold Corp.’s tie-up with Randgold Resources Ltd. must ask themselves an uncomfortable question: Can a big merger actually resurrect the gold industry? Analysis (Tim Kiladze, for subscribers)
Barrick’s new CEO Mark Bristow is a blunt-spoken, motorcycle-riding Africa expert: Barrick Gold Corp.’s new chief executive officer, Mark Bristow, is a larger-than-life character: a former conscript soldier in South Africa’s apartheid army whose hobby is riding motorcycles across the most dangerous and remote corners of the African continent. The 59-year-old miner has manoeuvred shrewdly through Africa’s challenges, building his Randgold Resources Ltd. into a multibillion-dollar empire with major projects in Mali, Ivory Coast and the Democratic Republic of the Congo. Story (Geoffrey York, for subscribers)
Barrick’s hiring of Mark Bristow sets up potential clash of strategic vision: Barrick Gold Corp. executive chairman John Thornton has been a great admirer of Randgold Resources Ltd. CEO Mark Bristow and has circled him for years. On Monday, the bromance triggered Barrick’s US$6-billion takeover of Randgold. It was an effective – though expensive – way for Mr. Thornton to fill the vacant CEO position at Barrick; Mr. Bristow is to become the head of the enlarged company. Now we know why Mr. Thornton was tempted to leave that position open for four years. As far as he was concerned, there was only one candidate for the job, and that candidate was Mr. Bristow. Opinion (Eric Reguly, for subscribers)
MORE FINANCIAL SERVICES AND DEALS NEWS FROM FRIDAY
Street moves: Canada’s Bank of Montreal has poached a team of six precious metals traders and salesmen in New York from Bank of Nova Scotia, which is pulling back from the market, five sources familiar with the matter said. Story
Bids: At least five insurers, including Britain’s Prudential and Canada’s Sun Life , have bid for Commonwealth Bank of Australia’s (CBA) majority stake in an Indonesian insurance venture, people with knowledge of the process said. Story
Investigation: Telecoms and financial services companies face an investigation by Britain’s competition regulator after consumer body Citizens Advice complained that customers who do not switch providers were being “ripped off.” Story
The Streetwise newsletter is Tuesday to Saturday. If you’re reading this on the web, or if someone forwarded this e-mail to you, you can sign up for Streetwise and all Globe newsletters on our signup page.