The action of the Laurentian Bank jumped about 30% Wednesday morning after the announcement, by the Quebec financial institution, of its sale.
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Shortly before 10 a.m., the stock traded at more than $44, up $10.59, on the Toronto Stock Exchange.
Tuesday afternoon, after the close of markets, the bank announced that it was conducting “a review of strategic options with a view to maximizing value for shareholders and stakeholders”.
Scotia and TD in first place
According to analyst Gabriel Dechaine of National Bank Financial, each of the six largest Canadian lenders (Royal Bank, TD Bank, Scotiabank, Bank of Montreal, CIBC and National Bank) could be interested in acquiring Laurentian.
Mr. Dechaine believes, however, that the “most motivated” buyers will be Scotia, which wishes to gain market share in Quebec, and TD, which is sitting on significant financial reserves and which faces “more questions more pressing about its capital deployment strategy.
Founded in Montreal in 1856, Laurentian Bank has nearly 60 branches and approximately 1,500 employees in Quebec (3,000 employees in total). Its assets exceed $50 billion.