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BCE Inc. (BCE $32.53)
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Laurentian Bank of Canada (LB $30.51)
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Cogeco Inc. Subordinate Voting Shares (CGO $58.86)
Q: Hello
Can you please comment on Laurentian Bank. I am very disappointed in this company as the price has fallen significantly in addition to dividends cut a few years back.
its in my registered account, so cannot utilizes the losses
My question, Do you think that they are a potential take over target? Perhaps TD?
With BCE, again very disappointed in this company. With their recent dividend cut, do you think we have seen bottom on stock price? I do see that it has had some growth lately, but it has a long way to go
With CGO, Do you think that their is an opportunity for both Telus and Cogeco to merge? Or see CGO as a take over target now?
Thank you
Can you please comment on Laurentian Bank. I am very disappointed in this company as the price has fallen significantly in addition to dividends cut a few years back.
its in my registered account, so cannot utilizes the losses
My question, Do you think that they are a potential take over target? Perhaps TD?
With BCE, again very disappointed in this company. With their recent dividend cut, do you think we have seen bottom on stock price? I do see that it has had some growth lately, but it has a long way to go
With CGO, Do you think that their is an opportunity for both Telus and Cogeco to merge? Or see CGO as a take over target now?
Thank you
5i Research Answer:
LB was up for sale in 2023 ('strategic review') and found no buyers at an acceptable price for it. BNS and TD would be the most logical buyers if a deal were to happen. It is still possible, and with CWB gone there are not a lot of options left for buyers. But we would not own it just on this possibility.
BCE 'likely' we think has nearly bottomed. As noted, it will be a long recovery road, but we think the company has so far taken the right steps.
Takeovers in the media/communications sector are tricky, with governments always getting involved. While CGO is cheap, it is controlled via multi-voting shares, and we would not count on a deal here.