RBC buys BlueBay
19 October 2010 London
Image: Shutterstock
RBC has agreed to pay USD1.5bn for the takeover of British fund manager BlueBay Asset Management.
The Canadian bank will pay GBP4.85 for each BlueBay share, corresponding to a 29.1 per cent premium to the asset manager's closing price of GBP3.757 on Friday.
The deal, seen to be completed by end-December, was recommended unanimously by BlueBay's board.
The transaction will be carried out as a court-approved arrangement and will be financed with existing cash resources of the bank.
According to the bank's wealth management head, George Lewis, the takeover will help RBC to remain among the top ten wealth managers worldwide.
The Canadian bank will pay GBP4.85 for each BlueBay share, corresponding to a 29.1 per cent premium to the asset manager's closing price of GBP3.757 on Friday.
The deal, seen to be completed by end-December, was recommended unanimously by BlueBay's board.
The transaction will be carried out as a court-approved arrangement and will be financed with existing cash resources of the bank.
According to the bank's wealth management head, George Lewis, the takeover will help RBC to remain among the top ten wealth managers worldwide.
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