Canada Goose Holdings (GOOS-T) Australian share sale by Canada Goose Holdings imploded after Huawei Technologies chief financial officer was arrested in December, creating steep losses for the deal's underwriters, especially Credit Suisse Securities.
Nov. 26, Canada Goose announced an offering of common shares that allowed its private-equity backer, Bain Capital, to unload stock it held in the company at a high price. Ten days earlier, Canada Goose shares had hit an all-time high of $70.05 (U.S.).
Early on, the deal seemed to be in good shape, with Canada Goose's share price rising above the $65.15 (U.S.) offer. A week later, an earthquake hit: the news broke that Canadian authorities had arrested Huawei's Meng Wanzhou while she was travelling through Vancouver, and Canada Goose's stock price quickly cratered. Over the span of three weeks, Canada Goose shares lost 40 per cent of their value.
Credit Suisse sold its stock at depressed prices, losing millions of dollars. On Friday, Bloomberg pegged the loss at $60-million (U.S.). Fellow underwriter Canadian Imperial Bank of Commerce sold shares too, but was less exposed than Credit Suisse. |
