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A roundup of some of the North American equities making moves in both directions today

On the rise

Aimia Inc. (AIM-T) jumped 8.3 per cent on Monday after announcing before the bell it has struck a deal with a group of dissident shareholders to revise its board and buy back as much as $125-million in shares.

The deal ends a feud with a the group, which has sought to shakeup Aimia’s board. Under the deal, Aimia says it will reconstitute its board by Feb. 28, 2020.

Barrick Gold Corp. (ABX-T) rose 1.9 per cent after Australia’s Saracen Mineral Holdings Ltd said it would buy its 50-per-cent stake in the Super Pit gold mine in Western Australia for US$750-million.

The Super Pit is one of Australia’s largest gold mines with an average production of 660,000 ounces per annum at an all-in sustaining cost of about A$1,100 per ounce, according to Saracen.

Cosmetics maker Coty Inc. (COTY-N) increased 2.6 per cent said on Monday it would acquire a majority stake in reality TV star Kylie Jenner’s make-up and skincare businesses for US$600-million.

Coty will acquire a 51-per-cent ownership in the company and the deal is expected to close in the third quarter of fiscal year 2020.

T-Mobile US Inc. (TMUS-Q) rose 0.1 per cent after it said on Monday Chief Executive Officer John Legere will step down on April 30 in favor of Chief Operating Officer Mike Sievert but not before completing its merger with U.S. rival Sprint Corp.

The third-largest U.S. wireless carrier is locked in a lengthy battle to close its merger with Sprint as it faces a state attorneys general lawsuit that alleges the merger would be harmful to consumers.

Legere’s announcement to step down follows several media reports that he was in talks to lead office-sharing startup WeWork.

On the decline

Canadian National Railway Co. (CNR-T) was down 0.2 per cent after conductors, trainpersons and yardpersons gave strike notice on the weekend ahead of a Tuesday deadline.

Scotia Capital analyst Konark Gupta said: “While a strike is possible, history suggests that strikes are typically avoided right before the deadline or end soon after commencing - with or without government intervention. We don’t see a compelling reason for a deviation from the norm in this round as well. Thus, we expect the impact of a potential strike to be low.”

See also: CN Rail to lay off 1,600 employees amid weakening economy, trade tensions

MedMen Enterprises Inc. (MMEN-C) plummeted 24.6 per cent after it announced late Friday layoffs and other cost-cutting measures as part of a “strategic plan to achieve its target of positive EBITDA by the end of calendar year 2020.”

The company said its 90-day plan will focus on five key objectives including divesting non-core assets, reducing expenses and "reinvesting in the company’s employees and culture."

The company said it initiated the process of laying off more than 190 employees, including over 80 corporate-level employees. It said the corporate-level layoffs represent more than 20 per cent of its corporate employee base. It expects the move to save about $10-million annually.

Paramount Resources Ltd. (POU-T) slipped 3.1 per cent after announcing after the bell on Friday the issuance of 5.65 million flow-through common shares at a price of $6.65 per share for total proceeds of $37,562,518. It said 3.75 million shares were issued to an entity controlled by chairman and president James Riddell.

The proceeds will be used to prefund a portion of its 2020 development program in Karr and Wapiti.

Laurentian Bank Securities analyst Patrick O’Rourke said: “Overall, we view the event as neutral given the 8.1-per-cent premium to Friday’s market close for Paramount stock is in-line with historic norms for Canadian Development Expense (CDE) premiums, while the large portion going to CEO James Riddell certainly shows a vote of confidence from management to current operation.”

HP Inc. (HPQ-N) was down 0.8 per cent said on Sunday that its board has rejected a US$33.5-billion takeover offer from Xerox Holdings Corp. (XRX-N).

The Palo Alto, Calif.-based company said the cash-and-stock deal undervalues its business, and its board cited concerns about “outsized” debt levels should the companies combine.

Shares of Xerox were 0.9 per cent higher.

With files from Terry Weber, Brenda Bouw, staff and wires

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 05/01/24 6:21pm EST.

SymbolName% changeLast
POU-T
Paramount Resources Ltd
+0.26%27.5
COTY-N
Coty Inc
+1.27%11.97
ABX-T
Barrick Gold Corp
+2.32%22.5
HPQ-N
HP Inc
+0.76%30.35
AIM-T
Aimia Inc
-1.92%2.56
TMUS-Q
T-Mobile US
+0.78%163.27
CNR-T
Canadian National Railway Co.
0%178.63
MMEN-CN
Medmen Enterprises Inc Class B Subordin
0%0.015

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