Morningstar: BNS Plans to Acquire 14.9% Stake in KeyCorpCould very well have been perfect timing for this green CEO. With a FED rate cut almost a certainty Keycorps value will rise. A nice way to dip your toe in the US market without too much exposure.
"Scotiabank is getting a decent price. KeyCorp’s shares never fully recovered from the banking crisis in 2023, and the acquisition price is modestly below our fair value estimate. We do not expect a material change in our fair value estimate for Scotiabank as a result of the announcement. With a total purchase price of USD 2.8 billion, compared with Scotiabank's market capitalization of around USD 54 billion, the deal is simply too small to drive a substantial shift in our thesis."
Sit back, average down if you can or need to, collect your dividend and wait for the inevitable rise.
GLTA