Market movers: Stocks that saw action on Monday – and why

A survey of North American equities heading in both directions
CI Financial Corp. (CIX-T) jumped 30 per cent on news it is being privatized by an arm of a Middle Eastern sovereign wealth fund in a deal that values Canada’s largest independent asset manager at $4.7-billion.
On Monday, CI announced it has entered in an agreement with Abu Dhabi-based Mubadala Capital – the alternative asset arm of Mubadala Investment Company – to be acquired for $32 a share – a 33-per-cent premium to the Friday’s closing price of $24.01
CI says upon closing of the transaction it will continue to operate with its current structure and management team, and will be considered independent of Mubadala Capital’s other portfolio businesses.
The transaction is also subject to court and regulatory approval and is expected to close in the second quarter of 2025.
CI’s chair William Holland said the deal will provide “certainty to shareholders while CI pursues its ongoing transformation,” which includes CI’s expansion in the U.S wealth management sector under the name Corient Holdings.
Mubadala’s private equity arm has made a splash in recent years, buying majority stakes in credit manager Fortress Investment Group and baby stroller maker Bugaboo. Its influence has coincided with the rise of multiple Middle East sovereign wealth funds, all of whom have deep pockets.
Chief executive officer of Mubadala Capital, Hani Barhoush said Mubadala is “fully aligned with the strategy and direction” of CI, and looks forward to working with the CI management team.
– Clare O’Hara and Tim Kiladze
Shares of General Motors (GM-N) added almost 3 per cent after Formula 1 said it will expand its grid in 2026 to make room for an American team that is partnered with the automaker.
“As the pinnacle of motorsports, F1 demands boundary-pushing innovation and excellence. It’s an honor for General Motors and Cadillac to join the world’s premier racing series, and we’re committed to competing with passion and integrity to elevate the sport for race fans around the world,” GM President Mark Reuss said. “This is a global stage for us to demonstrate GM’s engineering expertise and technology leadership at an entirely new level.”
The approval ends years of wrangling that launched a U.S. Justice Department investigation into why Colorado-based Liberty Media, the commercial rights holder of F1, would not approve the team initially started by Michael Andretti.
Mr. Andretti in September stepped aside from leading his namesake organization, so the 11th team will be called Cadillac F1 and be run by new Andretti Global majority owners Dan Towriss and Mark Walter. The team will use Ferrari engines its first two years until GM has a Cadillac engine built for competition in time for the 2028 season.
Mr. Towriss is the the CEO and president of Group 1001 and entered motorsports via Andretti’s IndyCar team when he signed on financial savings platform Gainbridge as a sponsor. Mr. Towriss is now a major part of the motorsports scene with ownership stakes in both Spire Motorsports’ NASCAR team and Wayne Taylor Racing’s sports car team.
Mr. Walter is the chief executive of financial services firm Guggenheim Partners and the controlling owner of both the World Series champion Los Angeles Dodgers and Premier League club Chelsea.
“We’re excited to partner with General Motors in bringing a dynamic presence to Formula 1,” Mr. Towriss said. “Together, we’re assembling a world-class team that will embody American innovation and deliver unforgettable moments to race fans around the world.”
Pittsburgh-based natural gas producer EQT (EQT-N) gained after it said on Monday that alternative asset manager Blackstone (BX-N) would buy minority stakes in some of its pipelines for US$3.5-billion in cash through a joint venture.
The sale would help EQT, one of the top U.S. natgas producers, to reduce the debt pile it accumulated after the US$14-billion purchase of pipeline operator Equitrans Midstream in July.
Blackstone and EQT would form the joint venture valued at about US$8.8-billion and it would contain EQT’s ownership interests in its regulated transmission and storage assets, the Mountain Valley Pipeline and the Hammerhead pipeline.
EQT said that the JV, along with its recently announced asset sales in Pennsylvania, would help the company to exit 2024 with about US$9-billion of net debt.
The company had a net debt US$13.6-billion as of Sept. 30. EQT said in July it planned to cut its debt load by $5 billion through cash it generated from operations and asset sales.
The Mountain Valley Pipeline, a 300-mile natural gas line running from West Virginia to Virginia, entered service in June after a years-long legal battle over its construction.
EQT’s stake in the entity that owns the pipeline is one of the prized assets within the portfolio being sold.
The Hammerhead pipeline has a capacity to carry 1.6 billion cubic feet per day from the production sites in Pennsylvania, EQT said.
The transaction is expected to close in the current quarter.
Bath & Body Works (BBWI-N) on Monday raised its forecast for full-year adjusted profit and said it expects a smaller drop in annual sales, helped by steadfast demand for its personal care products and new offerings in its stores, sending the retailer’s shares surging.
The Ohio-based company introduced new products including its new winter range of fragrances such as Winter Candy Apple and Frosted Coconut Snowball to keep up with competition and help tackle softer demand in the retail industry in the quarter.
An uptick in sales during the quarter, especially in it fragrance offerings, has resulted from the company’s efforts to push the brand as affordable luxury, particularly among younger customers.
“We believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar,” said CEO Gina Boswell in a statement.
Bigger rivals Estee Lauder and L’Oreal were pulled down by waning demand as consumers restrained spending on their premium beauty products and upmarket lipsticks and perfumes.
Bath & Body Works now expects net sales to shrink to a range of 1.7 per cent to 2.5 per cent for full-year 2024, compared with a prior forecast of a 2-to-4-per-cent decline.
Bath & Body Works expects annual adjusted earnings per share between US$3.15 and US$3.28, compared with a prior forecast of between US$3.06 and US$3.26 per share.
On an adjusted basis, Bath & Body Works posted a profit of 49 US cents per share for the quarter ended Oct. 28, above analysts’ average estimates of 47 US cents per share, according to data compiled by LSEG.
The company’s third-quarter sales rose 3 per cent to US$1.61-billion, beating estimates of US$1.58-billion.
Shares of Newmont Corp. (NGT-T) declined 2.2 per cent after it said on Monday it would sell its Eleonore mine in Quebec to UK-based miner Dhilmar Ltd for US$795-million in cash, as the world’s largest gold miner continues with its plans to divest non-core assets.
Newmont said the deal, along with other sales it announced in 2024, would help it raise US$3.6-billion.
The gold miner had set a target of generating more than US$2-billion through asset sales following its US$17-billion purchase of Newcrest in 2023.
The transaction is expected to close in the first quarter.
Montreal-based GURU Organic Energy Corp. (GURU-T) was down 1.9 per cent on the premarket announcement that its distribution agreement a subsidiary of PepsiCo will conclude on May 22, 2025 in accordance with the terms outlined in an agreement signed in 2021.
The Montreal-based energy drink company said it will “transition back to its proven direct distribution model that drove GURU’s growth from 1999 to 2021, ensuring uninterrupted service to retailers and consumers across Canada.”
In a research note, Stifel analyst Martin Landry said: “companies were legally able to terminate the agreement without cause. It suggests that this partnership did not yield the expected benefits for both parties. Over the years there were a few execution missteps on the merchandising front which caused lost sales for GURU. In addition, with the arrival of Celsius in Canada, which was distributed by Pepsi, perhaps GURU was not getting as much attention as it deserved. Hence, while there will be a transition period for GURU, we believe that gaining back the control of the merchandising and the customer relationship should be beneficial for the company over time”
Macy’s (M-N) on Monday delayed the publication of its third-quarter results due to an accounting issue tied to delivery expenses and instead posted preliminary results in which its sales missed Wall Street expectations.
A single employee “intentionally made erroneous accounting accrual entries” to hide about US$132-million to US$154-million of delivery expenses from the fourth quarter of 2021 through third quarter of 2024, the department store chain said.
Macy’s had recorded about US$4.36-billion as delivery expenses in this period.
Shares of the Bloomingdale’s parent, which was set to report results on Nov. 26, fell as the company expects third-quarter sales to be down 2.4 per cent.
The company said the employee is no longer with the company and that an independent investigation showed no involvement by any other employee and there was no sign of the error affecting cash management activities or vendor payments.
Macy’s preliminary results showed net sales fell to US$4.74-billion compared to US$4.77-billion based on estimates compiled by LSEG, a sign that steep promotions have failed to draw customers who have turned selective on purchases for the holidays.
But CEO Tony Spring said November comparable sales were trending ahead of third-quarter levels, in the run-up to the crucial shopping season, where retailers offer big discounts.
Macy’s surprise announcement has amplified concerns of an uncertain holiday season, which is likely to favor large retailers such as Walmart (WMT-N) and Amazon (AMZN-Q).
Target (TGT-N) and several other department store chains, however, may see muted sales due to their skewness toward more slightly pricey non-essential items.
Macy’s expects to report its full third-quarter financial results and hold its earnings conference call, in which it will provide its fourth quarter and annual outlooks, by Dec. 11.
“While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues are focused on…executing our strategy for a successful holiday season,” Mr. Spring said.
Texas-based Cassava Sciences (SAVA-Q) said on Monday it will stop all trials of its Alzheimer’s disease drug after it failed a late-stage study, sending shares of the drug developer plummeting.
The experimental treatment, simufilam, has been at the center of scrutiny after a medical professor linked to its development was charged with fraud in June.
Neuroscientist Hoau-Yan Wang allegedly submitted false data to get millions of dollars in public funds for research into the drug.
But Wang, a former science adviser to the company, was not involved with the late-stage studies of simufilam, Cassava has said.
Wang, who was previously listed as the co-lead scientist for simufilam on Cassava’s website, is no longer on the list.
In September, the U.S. Securities and Exchange Commission also charged Cassava and its two former executives for making misleading claims in 2020 about the results from previous clinical trials of the drug and demanded a US$40-million penalty.
A few years ago two physicians unaffiliated with Cassava had alleged the research underpinning simufilam was based on manipulated and misrepresented data.
In the latest late-stage study, simufilam failed to reduce cognitive or functional decline in patients with mild-to-moderate Alzheimer’s disease, compared to placebo, the company said, prompting it to discontinue ongoing studies of the drug.
But the drug continued to show an overall favorable safety profile, said the company, which will present the data at an upcoming medical meeting.
With files from staff and wires