Laurentian Bank shares tumbled as much as 9% on a report Scotiabank and TD Bank dropped out of the running to acquire it. Read more.
Play Video
The decline reverses some of the gains Laurentian made earlier in the month when it announced it was conducting a strategic review with the potential for a sale. The shares surged as much as 44 per cent the next day, the most since 1989.Barclays Bank PLC analyst John Aiken said the report in the Globe and Mail means the probability of a sale has fallen to less than 50 per cent. At the very least, it reduces the odds of a bidding war for the bank, he said.
Until Laurentian management “announces the results of the strategic review and some clarity is regained, we believe the stock could see a slow grind downward over the near term,” Aiken said in a July 28 note to investors. Laurentian was down 7.5 per cent to $40.40 at 1:09 p.m. in Toronto.Article content
Scotiabank, with its stated desire to expand in Quebec, and Toronto-Dominion, with its large capital buffer after the First Horizon Corp. deal fell through, were two of the strongest suitors to win over Laurentian, Aiken added. Scotiabank made its final decision to drop out on Wednesday, the Globe said, creating uncertainty leading up to the deadline for initial bids at the end of July.Bank analysts were quick to begin speculating on potential buyers when Laurentian Bank put itself up for sale. While some pointed to Scotiabank and TD as likely choices, Veritas Investment Research analyst Nigel D’Souza flagged National Bank of Canada as his top candidate to acquire the bank and boost its share in its home market.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Laurentian Bank faces tepid interest as bid deadline approachesAnalysts expect Laurentian to make a final decision on an acquirer before the bank reports its financial results on Aug. 30
Read more »
Laurentian shares slide as leading buyout contenders decline to make an offerThe bank’s stock price dropped as much as 9 per cent in early trading on Friday after reporting from the Globe on potential bidders
Read more »
Season Dufferin Centre supports Trenton Care and Share Food BankA Trenton retirement residence has made a $2,100 donation to the Care and Share Food Bank. Seasons Dufferin Ce...
Read more »
Fed hikes interest rate: Read the official statementThe Federal Reserve raises its key interest rate in a bid to curb inflation. Read more
Read more »
Fed hikes interest rate: Read the official statementThe Federal Reserve raises its key interest rate in a bid to curb inflation. Read more
Read more »
Fed hikes interest rate: Read the official statementThe Federal Reserve raises its key interest rate in a bid to curb inflation. Read more
Read more »