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Thursday June 17, 11:03 am Eastern Time
National Bank of Canada to buy First Marathon
TORONTO, June 17 (Reuters) - First Marathon (Toronto:FMSa.TO - news), the last
of Canada's large independent brokers, fell prey to a big bank on Thursday after
National Bank of Canada (Toronto:NA.TO - news) said it intends to buy the
Toronto-based brokerage in a cash and share transaction.
National Bank said in a press release that it will buy all the shares of First Marathon in a
C$26-a share transaction worth C$712.4 million.
All operations of First Marathon, including its securities operations, will be merged with National Bank's brokerage arm,
Levesque Beaubien Geoffrion Inc., to form a new national investment firm. It will have two divisions -- a national retail firm
and a national wholesale firm, both of which will have operating units in both Montreal and Toronto.
Under the terms of the agreement, First Marathon shareholders will have the option of receiving C$26 in cash or 1.3
common shares of National Bank for each Class A non-voting share or Class C voting share they hold.
''This is a strategic transaction that benefits both parties,'' Jean Turmel, president, financial markets, treasury and investment
banking at National Bank, said in a press release. ''The transaction will enable the National Bank to reinforce its capabilities
and its network in the key areas of corporate finance and institutional brokerage.''
This takeover bid comes less than a month after an earlier attempt to reach an agreement collapsed, reportedly over price.
($1=$1.46 Canadian)
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