Fairfax 2020

[StubbleJumper]

Back to the other bidders.....why not Fairfax itself.

 

Dear lord can you imagine the reaction on this board if Fairfax took Torstar private?! Prem can't admit mistakes! Declining industries! Good money after bad! Liquidity! Leverage! AAAAAAAAAARRRRRRGGGGGHHHHH.

Couple of (serious!) points:
1) What makes you believe Torstar did not test the market before agreeing this deal?
2) If there was a better deal to be had, why would Fairfax not have taken it?

3) Anyone can still make a bid.  The break-fee seems to be only $2+1.5m on a deal that is currently valued at $52m.  If somebody figures that this is a bargain and comes in and offers, say, $75m later this week Torstar BoD wouldn't have much choice but to recommend that the offer be accepted and simply pay the break-fee.  Any offer above $55.5m ($52+3.5) would be a no-brainer for shareholders, right?  Probably not going to happen...

Looks like there might be a slightly richer bid for Torstar:  https://www.cbc.ca/news/business/torstar-tsx-bid-1.5643172


SJ

Yet another richer bid for Torstar:  https://www.theglobeandmail.com/business/article-nordstar-ups-torstar-offer-in-what-could-end-bidding-war/

The market seems to agree with BearProwler!


SJ

[Xerxes]

more on Toronto Star on BNN.
Interesting clip.

https://www.bnnbloomberg.ca/nordstar-raises-bid-for-torstar-to-60-million-days-after-rival-offer-1.1464392

[StubbleJumper]

more on Toronto Star on BNN.
Interesting clip.

https://www.bnnbloomberg.ca/nordstar-raises-bid-for-torstar-to-60-million-days-after-rival-offer-1.1464392

There was an article in today's Globe which was even more disturbing.  https://www.theglobeandmail.com/business/article-nordstar-ups-torstar-offer-in-what-could-end-bidding-war/

It would seem that the alternate bid might be superior because the proponents are suggesting that they are prepared to both bid higher in a cash-up-front perspective PLUS they have suggested that they would include contingent value rights to Torstar shareholders.  Despite that, it seems like Prem has locked up our Torstar shares for the lower valued bid.  I think that Prem might have a bit of explaining to do during the next quarterly teleconference if he is truly accepting an inferior bid from a former FFH executive.

It's looking more and more like BearProwler called this one correctly...

SJ

[bearprowler6]

more on Toronto Star on BNN.
Interesting clip.

https://www.bnnbloomberg.ca/nordstar-raises-bid-for-torstar-to-60-million-days-after-rival-offer-1.1464392

There was an article in today's Globe which was even more disturbing.  https://www.theglobeandmail.com/business/article-nordstar-ups-torstar-offer-in-what-could-end-bidding-war/

It would seem that the alternate bid might be superior because the proponents are suggesting that they are prepared to both bid higher in a cash-up-front perspective PLUS they have suggested that they would include contingent value rights to Torstar shareholders.  Despite that, it seems like Prem has locked up our Torstar shares for the lower valued bid.  I think that Prem might have a bit of explaining to do during the next quarterly teleconference if he is truly accepting an inferior bid from a former FFH executive.

It's looking more and more like BearProwler called this one correctly...

SJ

https://www.bnnbloomberg.ca/torstar-bid-raises-shareholders-ire-sparking-calls-for-osc-probe-1.1466294

From the BNNBloomberg article:

"It's hard to understand the [families’] actions," said Groia, who worked at the OSC as associate general counsel and director of enforcement from 1985 to 1990.

"My experience as a former regulator is any time you can't understand why people are reacting the way they are, the general answer is that there's something motivating them that we don't know about. That's what an investigation is for."

Fair and friendly....hardly.....

[StubbleJumper]

more on Toronto Star on BNN.
Interesting clip.

https://www.bnnbloomberg.ca/nordstar-raises-bid-for-torstar-to-60-million-days-after-rival-offer-1.1464392

There was an article in today's Globe which was even more disturbing.  https://www.theglobeandmail.com/business/article-nordstar-ups-torstar-offer-in-what-could-end-bidding-war/

It would seem that the alternate bid might be superior because the proponents are suggesting that they are prepared to both bid higher in a cash-up-front perspective PLUS they have suggested that they would include contingent value rights to Torstar shareholders.  Despite that, it seems like Prem has locked up our Torstar shares for the lower valued bid.  I think that Prem might have a bit of explaining to do during the next quarterly teleconference if he is truly accepting an inferior bid from a former FFH executive.

It's looking more and more like BearProwler called this one correctly...

SJ

https://www.bnnbloomberg.ca/torstar-bid-raises-shareholders-ire-sparking-calls-for-osc-probe-1.1466294

From the BNNBloomberg article:

"It's hard to understand the [families’] actions," said Groia, who worked at the OSC as associate general counsel and director of enforcement from 1985 to 1990.

"My experience as a former regulator is any time you can't understand why people are reacting the way they are, the general answer is that there's something motivating them that we don't know about. That's what an investigation is for."

Fair and friendly....hardly.....

It's puzzling how often FFH ends up being involved in transactions that have a bad smell to them.


SJ

[bizaro86]

more on Toronto Star on BNN.
Interesting clip.

https://www.bnnbloomberg.ca/nordstar-raises-bid-for-torstar-to-60-million-days-after-rival-offer-1.1464392

There was an article in today's Globe which was even more disturbing.  https://www.theglobeandmail.com/business/article-nordstar-ups-torstar-offer-in-what-could-end-bidding-war/

It would seem that the alternate bid might be superior because the proponents are suggesting that they are prepared to both bid higher in a cash-up-front perspective PLUS they have suggested that they would include contingent value rights to Torstar shareholders.  Despite that, it seems like Prem has locked up our Torstar shares for the lower valued bid.  I think that Prem might have a bit of explaining to do during the next quarterly teleconference if he is truly accepting an inferior bid from a former FFH executive.

It's looking more and more like BearProwler called this one correctly...

SJ

https://www.bnnbloomberg.ca/torstar-bid-raises-shareholders-ire-sparking-calls-for-osc-probe-1.1466294

From the BNNBloomberg article:

"It's hard to understand the [families’] actions," said Groia, who worked at the OSC as associate general counsel and director of enforcement from 1985 to 1990.

"My experience as a former regulator is any time you can't understand why people are reacting the way they are, the general answer is that there's something motivating them that we don't know about. That's what an investigation is for."

Fair and friendly....hardly.....

It's puzzling how often FFH ends up being involved in transactions that have a bad smell to them.


SJ

It's not that puzzling anymore, imo. I think when you have a large enough sample of actions, Occam's razor applies.

[Pedro]

I read the competing bid by Modern Media Holdings Inc's to be more likely to break up the company since the future asset contigency sales is in their deal.  I read the Nordstar bid  as committing to keep the paper intact.

Isn't the seller within the right to choose which company to sell to based on the way the new buyer will run the business?  In this case keeping the business operating and not stripping it was part of the reason why Nordstar was chosen.

I might be misunderstanding but I dont see the egregious action by the owners for their baby to be in the hands of like minded buyers.

[Bryggen]

And my question on that deal and issues raised is from a FFH shareholders' perspective, are we winning or losing?

Can someone explain.

FFH is a shareholder of Torstar and could have gotten more, but refused to allowing Rivett to succeed in his bid?

?

[bearprowler6]

And my question on that deal and issues raised is from a FFH shareholders' perspective, are we winning or losing?

Can someone explain.

FFH is a shareholder of Torstar and could have gotten more, but refused to allowing Rivett to succeed in his bid?

?

Furthermore, Rivett/Botove were on the record as saying that their group will begin to sell off many if not all of the investments (Vertical Scope, Blue Ant, Black Press, Nest Wealth etc) that Torstar currently owns and expects to raise at least $100 million from these sales.

By any measure this deal stinks. There is no justification for Fairfax supporting the Rivett/Bitove bid!

[bearprowler6]

And my question on that deal and issues raised is from a FFH shareholders' perspective, are we winning or losing?

Can someone explain.

FFH is a shareholder of Torstar and could have gotten more, but refused to allowing Rivett to succeed in his bid?

?

Furthermore, Rivett/Botove were on the record as saying that their group will begin to sell off many if not all of the investments (Vertical Scope, Blue Ant, Black Press, Nest Wealth etc) that Torstar currently owns and expects to raise at least $100 million from these sales.

By any measure this deal stinks. There is no justification for Fairfax supporting the Rivett/Bitove bid!

https://www.theglobeandmail.com/business/article-torstar-buyer-expects-to-raise-100-million-selling-minority-stakes/#comments