Xavier Rolet on a sales pitch spree in Montreal…Don’t waste your energy, we don’t « buy » it

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The excellent National Post published on Thursday June the 16th a follow up to the still ongoing imbroglio surrounding LSE’s bid for TMX, versus the local bid presented by the Maple Group created out of several canadian banks and pension funds. Xavier Rolet, CEO of the LSE, and Thomas Kloet, chief executive of TMX Group Inc, paid a visit to corporate Quebec on last Wednesday in a Marriott Hotel ballroom. They went there basically to try wining over the opinion of Quebec’s financial elite who had nevertheless already presented a counter-offer through the Maple Group for the acquisition of TMX. As Premier Jean Charest does endorse Maple Group’s bid and that the Group includes many financial institutions based in Quebec, the task ahead was difficult.

First, we must all admit that Xavier Rolet does what he has to do: he gives his sales pitch like a professional. He presents arguments, elements of interest, etc, to try to win over a favorable opinion. As an example, he even said that Maple’s bid was based on « worry and fear ». Now, that’s a big statement but it misses the point. Those who back LSE’s bid think there is no problem with it, since Canada is an open market economy. O.K. But again, that’s not the point. TMX-LSE merger has been presented, from the start, as a « merger of equals » . I am not inventing it, these are their own words. But when you end up with only 45% of the shares, compared to 55% for the opposing merging company, that’s not a « merger of equals », it is an acquisition, a take-over in disguise. I am not an economist. I don’t even have an undergraduate degree in mathematics. But I know my numbers. 45 doesn’t equal 55. Period. Whatever way you want to put it, these two numbers will never equal. Are you taking us for fools? Continuer la lecture

The national securities regulatory agency and the Canadian « Federation » great power swindle

New Brunswick took a stand recently against the national securities regulatory agency, and so three other provinces. Combined with Quebec and Alberta, that makes a total of six provinces that have rejected this project of national agency. Is this a sign that finally provinces begin to get the idea about the nature of the federal government in Canada? If you look at history, the document that was signed in 1867 by the Province of Canada (Quebec and Ontario), Nova Scotia and New Brunswick, was a confederation document, not a federation one. Because of the two World Wars and others circumstances, the federal government progressively took control of powers and responsibilities that were legally under the jurisdiction of the provinces until then. To this day, these powers and responsiblities have not been given back to the provinces.

Apparently, New Brunswick is beginning to be tired of this centralist federalism that has never ended up advantaging them. The union of these six provinces is definitely the sign that after a century and a half, people have finally awaken and realized that they have been had. Canada as it is today, is not the country that their forefathers wished for and it is not the one neither that was written down in the Confederation agreement. The decisive aspect of this issue is definitely the convergence of voices of other — finally! — provinces in the arena of criticism aimed at the federal government. For decades Quebec has been alone doing that, well, at least we feel it was, but now that has changed. After repeated separatist/sovereignist speeches and discussions, other Canadians in position of power begin to realize that we could get much more out of the Canadian « Federation », if only the funding document of this country was respected.

In an earlier post, I have written that the union of interests and strategy of the provinces of Quebec and Alberta could be the beginning of a new Canada. Well, ideally, the best would be for all provinces to jump in the bandwagon of affirmation and territorial sovereignty. A confederation is a union of sovereign states, binded together by a central institution that acts only as a musical director or choreographer. The musicians or dancers are not the slaves, employees or butlers of the director or choreographer. They are rather artists who deliver art and performance under the guidance and leadership of such figures. It is a huge difference. So I take with great pleasure these expressions of sovereignty by the provinces. I guess they are the ultimate signs that finally, the country, which used to be only a colony in which everybody could pillage the resources and exploit the inhabitants, has taken the path toward political maturity. If this present trend keeps growing and gives fruition, instead of being a mere banana republic in the western hemisphere, Canada will be able to be recognized as a real and mature nation.

Neil Reynolds – Globe and Mail