Topic: How To Invest

The Successful Investor Hotline – Friday, April 7, 2017

Article Excerpt

PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 13, 2017. SNC-LAVALIN GROUP INC., $54.20, Toronto symbol SNC, is a leading Canadian engineering and construction company that specializes in large-scale public works projects such as roads, bridges, transit systems and water-treatment plants. The company has offered to acquire U.K.-based engineering firm WS Atkins plc. The two firms continue to negotiate a sales price. SNC has indicated the purchase will cost about $3.5 billion. That’s equal to 43% of its current market cap (the total value of all outstanding shares) of $8.1 billion. The Caisse de dépôt et placement du Québec, which manages the province’s public pension plan, will help SNC pay for the acquisition by purchasing $400 million of the company’s new common shares and lending it $1.5 billion. Under U.K. takeover rules, SNC must make a final offer by May 1, 2017. Atkins specializes in industrial projects such as railways, nuclear power plants, water-treatment facilities and highways…