Credit Suisse loses $60 million on Canada Goose
Credit Suisse Group AG lost about US$60 million late last year after it was left holding shares in a North American clothing company that slumped during rising trade tensions between Canada and China, according to people with knowledge of the matter.
Credit Suisse, which acted as underwriter on the sale of 10 million shares by Canada Goose Holdings Inc. stockholders in late November, saw the value of the stock tumble after the arrest of Huawei Technologies Co’s finance chief in Canada prompted a diplomatic dispute between the two countries, the people said, asking to not to be identified as the loss isn’t public.
The offering was priced at US$65.15 a share, a 1.85 per cent discount to the previous close, a person familiar with the matter said at the time of the deal in late November. The arrest of Huawei Technologies Co.’s finance chief in Vancouver on Dec. 1 prompted Chinese websites to call for a boycott of Canadian brands and a 20 per cent four-day losing streak for the stock later that month.