Mon, Jan. 4, 3:05 PM
- CIT Group (CIT -1%) rallied in mid-November (but has since fallen all the way back) on chatter of a potential sale, with Bank of Montreal (BMO -3%) mentioned as a possible suitor.
- Canadian lenders make sense, says Mark Palmer, given those banks' excess capital and acquisitive mood. CIT Group offers entry into the U.S. middle market rather than a more risky area like Latin America.
- John Thain's exit from CIT in March - along with the purchase of OneWest Bank - means the rehabilitation of CIT is complete. A purchase of the lender by a Canadian bank would be immediately accretive, and possibly allow the buyer to benefit from the sales of CIT's aircraft and railcar leasing businesses.
- Palmer rates CIT a Buy with $56 price target - about 40% above the current level.
Sep. 10, 2015, 5:17 PM
- In continued divestment, General Electric (GE +0.5%) says it's agreed to sell its GE Capital Transportation Finance business to Bank of Montreal's BMO Financial Group (BMO +0.5%).
- Terms were undisclosed. GE says with its continuing sales, it's hit $85B and is on track to reduce ending net investment by $100B. The sale of its Transport Finance unit represents about $9B in ENI.
- It'll contribute about $0.7B in capital to an overall target of about $35B in dividends expected to be paid to GE under its plan. GE says it expects to be substantially done with its exit strategy by the end of 2016.
- The deal's expected to close in December.
Jan. 31, 2014, 8:41 AM
- Bank of Montreal (BMO) isn't the only North American fund manager looking to boost its presence in Europe, and there are a number in P-E - Blackstone (BX) and KKR immediately come to mind - looking to get into fund management.
- Ray Soudah - chief of an M&A consultancy - thinks there's a good chance BMO will have to boost its £700M offer.
- F&C is a fat target after a couple of years of shareholder activism and management turnover - not a good thing for an asset manager, but also not damaging the brand name of a company whose history traces back to 1868.
- Previous coverage
Jan. 28, 2014, 4:14 AM
Jan. 27, 2014, 8:36 AM
- F&C Asset Management is up 24% in London trade after saying it's in talks to be purchased for 120 pence per share by BMO Financial Group, the parent of Bank of Montreal (BMO).
- FCAM is the manager of the U.K.'s largest investment fund and had about £90.1B in AUM as of the end of Q3. The offer comes five months after activist investor Edward Bramson stepped down as chairman. Bramson had sought to boost performance by cutting costs, slowing acquisitions, and focusing on the firm's traditional businesses.
Jul. 6, 2011, 11:27 AM
With the closing of Bank of Montreal’s (BMO) acquisition of Marshall & Ilsley, the revelation that 17 M&I execs will get ~$90M in bonuses outrages Canadian investors. An “unfortunate byproduct” of Canadian deals south of the border “is the cost of signing off on U.S.-style severance payments," Toronto's Globe and Mail says, but the package is "warped" even by U.S. standards.| Jul. 6, 2011, 11:27 AM