Archive

Reuters blog archive

from Breakingviews:

Buffett and tax outrage both diversions in BK deal

By Robert Cyran

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Warren Buffett’s name is giving Burger King’s deal to buy Tim Hortons, now worth some $11 billion, a public relations boost. But some commentators on Twitter are calling the Berkshire Hathaway boss a hypocrite and branding him unpatriotic for supporting a company moving from the United States tax jurisdiction to Canada. Both sentiments are diversions.

The Sage of Omaha is lending Burger King $3 billion in the form of preferred stock at a lucrative 9 percent interest rate. He is once again backing BK’s majority owner 3G Capital, the Brazilian private equity group which bought Heinz last year for $28 billion with his financing help. But Buffett’s imprint tells regular investors in Burger King and Hortons nothing. There’s no vote of confidence in either company’s common stock, and no Buffett management stardust being spread, either.

He also lent money during the financial crisis to Goldman Sachs, Bank of America and General Electric among others. Amidst deep market gloom about banks, his investments carried the valuable message that he thought the companies would survive. But investments in Heinz, before that in Wrigley alongside Mars, and now in the Burger King acquisition of Hortons are just profitable uses of a few billion of Berkshire’s spare cash.

from Breakingviews:

Burger King tax flip merger logic doesn’t stack up

By Kevin Allison

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

It will take more than a crossing of the Canadian border to justify investor ebullience for a potential Burger King-Tim Hortons combination.

from Breakingviews:

Why can Burger King, but not Wendy’s, own Hortons?

By Rob Cox

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Why can Burger King, but not Wendy’s, own Tim Hortons? Burger King used to argue that it was exceptional for the flame-broiling of its burgers. With its $11 billion purchase of the Canadian doughnut-chain, its shareholders seem to believe it is special in some other ways.

from MacroScope:

Canada housing: This time it’s different, eh

AResults are in from the latest Reuters poll on Canada’s rampant property market from economists and market analysts, and the message is everything’s fine.

Prices will rise gradually over the next few years and there is very little risk of a crash.

from Breakingviews:

Cross-border arbitrage is expansive Bimbo’s yeast

By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Cross-border arbitrage is the yeast for Grupo Bimbo’s aggressive expansion. In its latest deal north of the border, the acquisitive Mexican breadmaker is shelling out $1.8 billion to buy Canada Bread. Paying 20 times earnings to move into a mature market may seem questionable. But Bimbo’s earnings fetch an even higher multiple at home – and the deal should lower its weighted average cost of capital.

from MacroScope:

The Bank of Canada is probably not ready to seriously consider cutting rates — yet

With all signs showing the Canadian economic miracle is fading, the Bank of Canada is understandably starting to sound more dovish. The Canadian dollar has got a whiff of that, down about 10 percent from where it was this time last year.

But that doesn't mean Governor Stephen Poloz is ready to signal on Wednesday that his rate shears are about to get hauled out of the shed.

from Photographers' Blog:

The last theater in town

Powell River, Canada

By Andy Clark

As far back as I can remember, history has always fascinated me. Though my specialty as an amateur historian has been military history, just about anything that occurred prior to my birth has had my undivided attention. Recently while having a coffee with a friend, he mentioned he had been to a town north of Vancouver called Powell River and had happened to visit a local movie theater. He went on to say matter of factly, that the theater had been continuously running since it was built many years ago.

“Stop right there,” I said. “Did you take any pictures of the place?” Yes, he had and he pulled out his laptop to show me.

from Breakingviews:

Lenovo-BlackBerry bid could squish under pressure

By John Foley and Ethan Bilby

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Lenovo is wading into the BlackBerry jam. The Chinese technology group has gained access to the books of the Canadian smartphone seller, which is already considering a $4.7 billion approach from shareholder Fairfax Financial Holdings. If it chose to bid, Lenovo would have to do better than the current offer of $9 per share, and overcome more obstacles.

from MacroScope:

How many politicians does it take to change a government?

Talks between Angela Merkel’s CDU and the centre-left SPD will resume on forming a German grand coalition but any agreement is probably weeks away yet.

With the Greens having bowed out at least we now know it will be a joint administration of the big two parties or fresh elections. The former remains odds on.

from Photographers' Blog:

The gunfighters

Aldergrove, Canada

By Andy Clark

The hot mid-day sun beat down as the fellow nervously checked his Ruger Blackhawk single action revolver. Spinning the chamber and checking the hammer mechanism several times he then slipped the gun smoothly in and out of his holster sitting low on his hips. Adjusting his Stetson he looked up and said “I may be nervous, but I am ready”. Stepping into position he slightly bent his knees and placed his partially open right hand over the holster, while his flattened left hand crossed over his stomach and balanced just above the hammer of the gun. Only yards away his opponent stepped into his position and took a similar stance. A split second later there was a deafening and almost simultaneous boom as both guns spit fire, creating a large cloud of blue smoke that hung in the air. It was over. There lying on the ground was not some poor soul but rather the tattered remains of two yellow balloons, both gunfighters checked their guns, holstered them and prepared for the next round.

As you have gathered this was not some scene from the late 19th century in a dusty town of the American wild west but rather, a modern day competition, taking place at the annual Canadian Open Fast Draw Championships in Aldergrove, about an hour east of Vancouver, British Columbia.

  •