Bain-Abu Dhabi Deal Loses Its Shine as CI Financial Tumbles 17%
- Preferred stock gives private equity group downside protection
- CI gets $1 billion but may have future obligations: Barclays
Kurt MacAlpine, chief executive officer of CI Financial
Photographer: Della Rollins/BloombergThis article is for subscribers only.
Investors are reassessing CI Financial Corp.’s deal to sell a piece of its US wealth management business to a group of investors including Bain Capital LP and Abu Dhabi Investment Authority.
Shares of CI tumbled 17% on Friday, closing at C$12.76 in Toronto, a move that reversed almost all of the previous day’s gains. At one point on Thursday, the stock was as high as C$18.69 as the market responded enthusiastically to news of the transaction.