Q: I see some analysts anticipating LB still has 25-40% upside from here. What do you anticipate the outcome of the strategic review to be? Do you see any regulatory hurdles from Quebec or elsewhere in an acquisition.
5i Research Answer:
Because it is quite small, we would not really anticipate regulatory issues. TD and BNS were probably the most likely buyers, and both have now dropped out of the bidding. Thus, we would not necessarily expect a bidding war here at 20%+ upside. It may ultimately go for higher than current prices, but we think 40% would be quite a stretch now. We might guess $50 as a final deal price.