Scotiabank Says Market ‘Too Negative’ on National Bank-CWB Deal
- National Bank shares have fallen 9% since the announced tie-up
- Analyst views proposed tranaction as a positive and low risk
A pedestrian passes in front of a Canadian Western Bank branch in Richmond, British Columbia, Canada.
Photographer: Ben Nelms/BloombergThis article is for subscribers only.
National Bank of Canada shares are being punished too harshly after announcing its intent to buy Canadian Western Bank, according to Bank of Nova Scotia, which called the deal a “strategic winner.”
Last week, Canada’s sixth-largest lender said it agreed to acquire Canadian Western for C$5 billion, or C$52.24 a share — a 26% premium over the target’s closing price Friday. Since the tie-up was announced after the market close on June 11, National Bank stock has slipped nearly 9%.