The Globe and Mail reports in its Saturday, Oct. 29, edition that contenders for HSBC Bank Canada are narrowing.
The Globe's James Bradshaw and Tim Kiladze write that unnamed sources say National Bank of Canada and Canadian Imperial Bank of Commerce are no longer in the auction for the Canadian arm of Britain-based HSBC Holdings Inc.
An unnamed source says Bank of Montreal is among the banks that are still pursuing HSBC Canada. Analysts have pegged Royal Bank of Canada as an obvious front-runner, because it is the only Canadian lender that might have enough excess capital to buy HSBC Canada in cash, without raising additional dollars. Toronto-Dominion Bank and Bank of Nova Scotia could also be contenders, though both companies face hurdles in the path to a deal.
TD is still working to close two large acquisitions in the United States. It is paying $13.4-billion (U.S.) to buy First Horizon, and purchasing New York-based Cowen for $1.3-billion (U.S.). TD, however, could sell some of its $16-billion (U.S.) interest in Charles Schwab Corp. to raise money.
Scotiabank is in the midst of a chief executive officer succession. Scotiabank, however, has expressed a desire to strengthen its presence in B.C.
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