Fairfax+Power Corp+Canso – Imagining the Possibilities. Fellow Brave Investors,
These three organizations own 29,614,946 B shares representing almost 42% of the total B shares outstanding or almost 37% of the total shares including the A shares. The combination of the Fairfax and Power Corp's financial strength, overlapping interests in insurance, Power Corp’s ownership of La Presse and Canso’s $240million interest in Postmedia makes for more than an intriguing combination. Canso has more than $10 billion in assets under management and has a key role in shaping Postmedia’s present and future activities.
The value of Torstar is massively understated and these three hugely successful organizations are keenly aware of the opportunity to reshape Torstar, Postmedia and the media world in Canada. They are precisely the kind of owners that will ensure news organizations thrive well into the 21st century.
They didn’t buy and hold almost 30 million shares to clip the coupons quarterly. At even $7/share it would cost them approximately $357 million to take up all of the shares. Not quite petty cash, but for these organizations it would get lost in the rounding.
Power Corp added 42,000 shares in recent months. Not enough to move the needle significantly. If any one of them starts to vacuum up shares watch for real movement. Opportunists should also be active as these three major players will make something happen.
I hope my instincts are right on this one and will continue buying on any signs of weakness in the share price.