The Globe and Mail reports in its Saturday, Aug. 8, edition that an unnamed source says Canaccord Genuity Group has been exploring ways to monetize its U.K. wealth management business for months now.
The Globe's Mark Rendell and James Bradshaw write that other unnamed sources say the current discussions may not lead to a transaction.
News that Canaccord is exploring a significant deal was first reported by Bloomberg on Friday, sending Canaccord's stock price up 72 cents to close at $8.15. Canaccord said Friday "it does not comment on market rumours or speculation." Canaccord's U.K. and Europe wealth management division began in 2012 with the acquisition of Collins Stewart Hawkpoint PLC and Eden Financial. Since then it has grown through a series of acquisitions, and is now Canaccord's largest wealth management division, employing 209 investment professionals and managers with $43.5-billion in assets under management.
Revenue from the division was down 5.5 per cent, year over year, in the most recent quarter, but it remains one of Canaccord's strongest-performing business segments. U.K. and Europe wealth management generated $67.9-million in revenue in the three months ended June 30.
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