Q: Would you sell Laurentian Bank at $40.50?
Seems low. Do you think a big bank will counter offer.
Seems low. Do you think a big bank will counter offer.
5i Research Answer:
It is not a 'great' offer but is all cash, and a 20% premium. Keep in mind that LB was previously up for sale in 2023 and found no takers then. This deal looks to be a 'pick at the bones' sort of deal with branches closing and NA taking part of the assets. We do not place high odds on a competing bid. Regulatory issues exist, and as noted the bank found no takers at a previous auction.