Tuesday, March 31, 2009

CPPIB buys "stapled units" of debt and equity, much like a Canadian Income Trust

What became of Flaherty’s “leveling the playing field” when Pension Funds can own private income trust and not pay the 31.5% tax (whereas the average investor does) and pension funds can own income trust equivalents that the Department of Finance are trying to discourage as the alternative investment vehicle to replace income trusts, in the corporate form, as I (Catalyst Asset Management) recommended occur with BCE, but BCE’s Board refused to properly disclose to their shareholders in their single minded pursuit of doing a backroom deal with Ontario Teachers”.

How are the 70% of Canadians without pensions to provide themselves with pension income if they are being opposed by Jim Flaherty and the Department of Finance at every crooked turn in the road?

CPPIB buys "stapled units" of debt and equity,much like a Canadian Income Trust
CPP Investment Board buys infrastrcuture

Andrew Willis, today at 9:13 AM EDT

The cash-rich CPP Investment Board is using the downturn to buy into the broadcast transmission business, making a $1.73-billion play on Tuesday for Macquarie Communications Infrastructure Group.

The CPPIB, a $109-billion public sector pension fund with long time horizons, is purchasing assets from an Australian investment bank that faces all the pressures that come with quarterly performance expectations, and a credit crunch.

The Macquarie unit owns a 48 per cent stake in Arqiva, a U.K. broadcast transmission provider, 50 per cent stake of British network Airwave and 100 per cent of Broadcast Australia, a leading broadcast transmission provider.

The Macquarie division is publicly traded and structured in what's known as "stapled units" of debt and equity, much like a Canadian income trust. Shareholders in the Macquirie unit must approve the purchase; directors have already endorsed the offer.

1 comment:

Dr Mike said...

Do you ever get the feeling that the small investor is at the bottom of the heap for a reason , the government just does not care.

Unless you have the resources & the where with all to lobby the crap out of them or are best buds with a top drawer dog on the gov`t payroll , you don`t stand a chance.

Good thing they work for us as I would hate to see what would happen if they didn`t.

Dr Mike.