Neill May and Ryan Szainwald in "CIBC divides steel products maker to conquer"
|Area||Corporate Finance and Securities|
Article originally published in The Globe and Mail, December
Excerpt from: "CIBC divides steel products maker to conquer", by Sean Silcoff:
Some small caps are trickier to sell than others. CIBC World Markets Inc. gets full marks for cleverly pulling off a successful $363-million auction of Oakville, Ont. manufacturer Vicwest Inc. Two auctions, to be precise.
When Vicwest converted into an income trust in 2005, the company was a perfect fit for the structure. It had two different businesses with one thing in common: both bashed steel. One made grain storage containers for farms; the other made siding and roofing for builders. The idea was that their differing business cycles would complement each other, funding steady payouts.
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