CI Financial in 'combination' talks with number of companies
One of Canada's most prominent mutual fund companies says it has talked with a number of financial institutions over the past few months about merging part or all of its businesses.
On Friday, CI Financial Inc. confirmed that it has had informal talks with a variety of suitors concerning different merger or buyout possibilities.
"Over the past several months, CI has had discussions with a number of parties concerning possible strategic combinations involving CI and its subsidiaries," the company said in a press statement.
The move came in response to inquiries from industry regulators after news reports pegged Scotiabank as interested in selling CI its mutual find assets.
Scotiabank was reportedly looking at selling this part of its financial business and wanted to trade CI its approximately $22 billion mutual fund portfolio in exchange for an equity stake in CI.
For its part, CI said it would not comment on speculation regarding any potential partners.
Interestingly, last year, CI and Scotiabank engaged in a bitter fight regarding who would get an equity stake in Dundee Wealth Inc. Scotiabank eventually won this corporate battle, gaining a 19 per cent stake in Dundee.
Currently, CI had fee-earning assets worth approximately $99 billion, of which $63 billion were investment funds and pools.
CI is owned 36 per cent by Sun Life Financial Inc.
Shares in CI were up $1.14 in trading Friday, closing at $22.11.
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