Here are five things you need to know this morning
Air Canada to suspend flights: Air Canada says it will begin a gradual suspension of flights as it faces a potential work stoppage by its flight attendants on Saturday. The airline says the first flights will be cancelled Thursday, with more on Friday and a complete shutdown of flying by Air Canada and Air Canada Rouge by the weekend. The union representing around 10,000 Air Canada flight attendants issued a 72-hour strike notice early this morning. In response, the airline issued a lockout notice. Air Canada says customers whose flights are cancelled will be notified and they will be eligible for a full refund. The company also says it has made arrangements with other Canadian and international carriers to provide customers with alternative travel options to the extent possible. Late yesterday Air Canada said it had reached an impasse with the union as the two sides remained far apart in contract talks. The union has said its main sticking points revolve around what it calls flight attendants’ “poverty wages” and unpaid labour when planes aren’t in the air.
Gildan buying Hanes for US$2.2 billion: The big deal in the underwear business has become reality. Montreal’s Gildan Activewear is buying Hanesbrands Inc. for about $2.2 billion in cash and stock, in its largest acquisition ever. Including debt, the deal values Hanesbrands at about $4.4 billion. Gildan’s Chief Executive Officer Glenn Chamandy says: “With this transaction, our revenues will double, and we achieve a scale that distinctly sets us apart.” Gildan says it expects the deal to bring synergies of at least $200 million within three years and be at least 20 per cent accretive to earnings per share.
Hudbay lines up Copper World financing: Toronto-based miner Hudbay Minerals has secured additional funding for its Copper World project in Arizona. Mitsubishi Corporation is investing US$600 million in a 30 per cent joint venture interest in Copper World. The project is set for a $1.5 billion total investment to deliver an anticipated 85,000 tonnes of “Made in America” copper production annually for 20 years. Copper is one of the sectors the Trump administration has targeted for increased domestic development. Hudbay also reported quarterly results today that came in well above analysts’ expectations.
Cenovus joins Indigenous groups for MEG: Bloomberg News is reporting Cenovus Energy is in talks with Indigenous groups to jointly buy MEG Energy. A Cenovus-led offer would be in competition with an existing unsolicited US$4 billion takeover bid for MEG from Strathcona Resources. The report says a group of First Nations and Metis communities including Chipewyan Prairie First Nation and Heart Lake First Nation are in talks with Cenovus about taking a $2 billion stake in MEG. The Indigenous stake would be backed by financial support from the federal and provincial governments, while Cenovus would bid for the rest.
New crypto IPO: In the latest sign the cryptocurrency craze is nowhere near slowing down, a company called Bullish has raised US$1.1 billion in an initial public offering, pricing its shares above the marketed range. Bullish is a digital-asset exchange operator and owner of the media outlet CoinDesk. It counts former New York Stock Exchange president Tom Farley as its chief executive officer, offers crypto spot trading, margin trading and derivatives trading, with a focus on institutional investors.
