Tender your DundeeWealth

Article Excerpt

DUNDEEWEALTH $21.52 (Toronto symbol DW; SI Rating: Speculative) (1-800-301-6745; www.dundeewealth.com; Shares outstanding: 121.3 million; Market cap: $2.6 billion: Dividend yield: 1.9%) has received a friendly takeover offer from Bank of Nova Scotia for the 82% of the company that the bank doesn’t already own. Bank of Nova Scotia is now offering 0.2497 of a Bank of Nova Scotia common share for each DundeeWealth common share. Plus, each DundeeWealth shareholder can choose to receive either $5.00 in cash or 0.2 of a $25.00, 3.70% five-year rate reset Bank of Nova Scotia preferred share for each DundeeWealth common share. DundeeWealth shareholders will also receive a special distribution of $2 a share, as well as a $0.50-a-share interest in Dundee Capital Markets, which will be set up as a separate company. Based on today’s price for Bank of Nova Scotia shares, the offer is worth $21.77 per DundeeWealth share. DundeeWealth is trading below that price. This indicates that investors are not expecting a higher offer. DundeeWealth shareholders…