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Big Banc Split Corp T.BNK

Alternate Symbol(s):  T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.


TSX:BNK - Post by User

Post by waitingstillon Mar 22, 2016 1:08am
374 Views
Post# 24686564

Not a lock

Not a lockDespite what some might write, this deal is not done until shareholders vote. Just recall what happened to PRE. Alfa came along and offered $6.50/share and management agreed 100% but a Venezuelan group started buying like crazy and bought just under 20% of the shares. They did not agree with the takeover price and tried to push it to $9. They began a concerted campaign to persuade shareholders and soon the ISS (Institutional Shareholders Service or something like that who provides information to Institutions on how to vote) sided with the Vens and Alfa tucked their tail between the legs and ran away with their offer even though they held just under 20% themselves. That was about 8 months ago. What happened then? PRE ran on harder times with the price of oil and is now trading under $1 and is currently mulling over options to avoid bankruptcy.

That situation was a bit different in that PRE hashuge debt and huge institutional holders. But a "good" deal can be blocked. PRE had been trading at $24 earlier. Some did not want to take $6.50 so now we are looking at 75c today. Also, we were deep into the oil slump and the light could not be seen like now. But you don't know what troubles management sees ahead and why they are keen for a buyout. Be careful what you wish for...


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