In a surprise turn of events, the potential acquisition of Laurentian Bank of Canada (LB.TO) by two of Canada’s top banks has hit a roadblock. According to a report by the Globe and Mail, Bank of Nova Scotia (BNS.TO) and Toronto-Dominion Bank (TD.TO) have both decided not to pursue a bid for the Montreal-based b
The news sent shockwaves through the financial industry, causing Laurentian Bank’s shares to plummet by 9%. The stock had already surged 27% earlier in July on hopes of a potential sale.
The reason behind the top bidders’ decision to back out is unclear, but it may be due to the challenges posed by Laurentian Bank’s current turnaround efforts. The bank is halfway through a three-year plan aimed at improving its performance, led by CEO Rania Llewellyn, who previously worked at Scotiabank.
Despite the setback, Laurentian Bank remains committed to its strategic review process, with the board of directors actively exploring all available options. However, the likelihood of a sale has now been lowered to less than 50%, according to analysts at Barclays.
The news is a disappointment for investors who were hoping for a profitable exit, but it may also deter other potential suitors who were considering making a bid. For now, the future of Laurentian Bank remains uncertain, and the situation will be closely watched by the financial community.