RE: Take-over target?
The Home Run VFC Inc. (TSX:VFC) $19.30 Up 36 per cent (one-day pop on news)
TD Bank stepped up to the plate as the cleanup hitter by offering $19.50 per share for the vehicle financing company in a deal worth $326 million. That may be a drop in the bucket for a big bank such as TD (TSX:TD) but a major coup for VFC stockholders.
VFC has been one of the TSX's big gainers in the small-cap space, having scored a near double in the past year on its flourishing niche market of financing vehicle loans to consumers with poor credit ratings. Small-cap fund manager Martin Ferguson of Mawer Investment Management recently made VFC one of his top picks in the Edge's Pro's 3 Stars feature.
This was a news story from 2006 about VFC which is TD financial Services now, as the story says TD bought them out. I am thinking this is a good picture of the future for both Carfinco and RFC. Look at the banks who have a subprime or non prime lending department and those that don't, RBC, and BMO don't..... TD has one, Bank of Nova Scotia does as well.
BMO I believe has something to do with one of RFC's lines of credit, Don't quote me on this though as my memory has been a little foggy from studying for University right now.
Phares