NOVEMBER 22, 2010, 1:11 PM MERGERS & ACQUISITIONS

Scotiabank in Deal for DundeeWealth (NYT)

BY DEALBOOK

Greg Locke/ReutersRichard E. Waugh, president and chief executive of Scotiabank.

Scotiabank plans to expand its asset management services with the acquisition of the 82 percent of the wealth management company DundeeWealth that it does not already own, the bank said on Monday.

The bank, the third-largest in Canada, agreed to pay 2.3 billion Canadian dollars ($2.25 billion) for the remainder of DundeeWealth. The deal, for 21 Canadian dollars a share, values DundeeWealth at 3.2 billion Canadian dollars.

“The acquisition of DundeeWealth demonstrates our strong commitment to build our wealth management presence in Canada and aligns to our global wealth management strategy,” Richard E. Waugh, the president and chief executive of Scotiabank, said in a news release announcing the deal.

Stock in Scotiabank, which is based in Toronto, was down 46 Canadian cents, at 54.23 dollars a share, at midday on Monday. Trading in DundeeWealth’s stock was halted.Scotiabank said it would offer a combination of common shares and either cash or preferred shares to shareholders of DundeeWealth.

The Dundee Corporation, also a wealth management company, owns the majority of stock in DundeeWealth and has agreed to accept the buyout. Dundee and DundeeWealth are based in Toronto.

Scotia Capital advised Scotiabank on the transaction. GMP Securities advised the Dundee Corporation, Dundee Capital Markets advised DundeeWealth and TD Securities advised the DundeeWealth special committee.