Norman LevineDundee Wealth Management Inc.DW.TOCOMMENTOct 02, 2007
Near term fundamentals do not matter. This stock may be in play with Scotia (BNS-T) having bought 18% and CI Financial (CIX.UN-T) making an offer above what the bank paid. Question is, will the Goodman family tender to CI, will they encourage Scotia to pay more, are they going to find another bidder or will they not allow a takeover.
Bullish on this one. With this you get the mutual fund company and the investment bank. As we go through a recovery all these businesses are improving substantially. 1.1% yield.
Goodman family has no desire to sell so don't buy for takeover possibilities. Will probably do okay in the long run but in the short-term their income is slowing. Would prefer a company that is more focused on shareholders needs, not family’s.
There has been no noise from potential bidders, however people (and he) believes that there is "another shoe to drop". Believes an enhanced bid will emerge that the board will find difficult to turn down.
Bank of Nova Scotia (BNS-T) just completed an agreement for 18% of the stock. CI Financial (CIX.UN-T) is also interested, but have to put a memorandum to the board. Until that happens, we won't know what will happen. An arbitrage play at this point.
Bank of Nova Scotia has just acquired 18%. CI Financial (CIX.UN-T) is trying to acquire as well. The Goodmans family controls majority shares and they can pick and choose.