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53461Re: [hockhist] MLSE in play

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  • Lloyd Davis
    Dec 1, 2010
      On 1-Dec-10, at 1:59 PM, Michael Levin wrote:

      > Does Ballsillie have the money? Ted Rogers has some deep pockets and
      > access to capital markets through Rogers Communications. Does
      > Ballsillie have similar resources? If so, then why would he wait this
      > long to make a bid for the pension fund's shares?

      Until fairly recently, Teachers' hasn't shown interest in divesting
      its share of MLS&E. However, it seems that lately it is in a mood to
      cash out of some holdings. It just dumped a bunch of stock in Maple
      Leaf Foods, the meat-packing and food-processing giant.

      People are moving into the condominiums that MLS&E built on the real
      estate near the Air Canada Centre. That was probably the last growth
      opportunity for the company. Now would be an excellent time to take
      some profits and deploy them in some depressed assets elsewhere.

      If the $1.3 billion price tag for MLS&E (which apparently won't
      include the real estate outside of the ACC) is correct, that would be
      roughly half Balsillie's reported net worth. That's an awfully big
      nut. Rogers Communications has a market cap about seven times as great
      as Balsillie's net worth. And the Rogers estate is good for about five

      Now, with the buzz about Terry Pegula trying to buy the Buffalo
      Sabres, a more pertinent question might be, why isn't Balsillie all
      over that option?
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