More Dundee grist for the mill

It might sound odd, but brokerage firms are talking this morning about a new angle on CI Financial’s bid for Dundee Wealth (DW:TSX). Word is that a new $30/share offer might be coming, with Fortress (FIG:NYSE) joining CI in the game as a joint-bidder. Something about carving up the hedge assets from the plain vanilla mutual fund business.

Inventive, and it might be true. Hand it to CI head Bill Holland. He brings all of the positives of an agressive, US-style CEO to his day job.

As for forcing the Goodman’s to sell, I wouldn’t hold my breath…whatever the price. You can’t force someone to ditch their baby when they control enough of the votes. And there isn’t a corporate governance manual that would say anything to the contrary.

If someone offered Ted Rogers $85 for his shares today, he would have every right to say no. Same for $185/share. That’s just the way it is. When His Honour Hal Jackman sold his 47.7% stake in National Trust to The Bank of Nova Scotia in 1997, it was a similar situation. He irrevocably sold his stake, and then announced what he had done; not many retail shareholders complained about the price BTW.

That’s just how it is when you buy into firms that have controlling shareholders. CI might want Dundee, and there might be a clearing price for the Goodmans. Once you’re rich, and your offspring want to run the company, why sell to anyone? Whatever the price?

MRM
(disclosure – we own BNS and Rogers in our household)