Teachers' final discount on Maple Leaf: $86-million

This is one pricey divorce.

The Globe and Mail
November 23, 2010

Teachers' final discount on Maple Leaf: $86-million
Boyd Erman


This is one pricey divorce.

Ontario Teachers' Pension Plan is now fully out of Maple Leaf Foods Inc. (MFI-T11.41-1.28-10.09%), but at a cost that just keeps climbing.

In August, when it sold its first big block of stock to West Face Capital, Teachers got $8.25 a share when the market price was $9. On 13.7 million shares, that discount cost about $10-million.

Tuesday, as it sold another 21 million shares of Maple Leaf (MFI-T11.41-1.28-10.09%) to a pair of investment banks, the pension plan manager had to accept a price of $10.50. The stock last traded before the sale was announced at $12.69. That's another $46-million in value lost.

Then, Teachers announced it increased the size of Tuesday's deal to 34.5 million shares, peeling out of the last of its total stake. That's another $29.6-million.

The grand total: just shy of $86-million.


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