RBC deepens fixed income expertise with acquisition of BlueBay Asset Management
|October 24th, 2010||
|BlueBay Asset Management plc (LSE: BBAY) and Royal Bank of Canada (NYSE: RY) recently mutually announced that RBC would be acquiring BlueBay. In accordance with the agreement, BlueBay shareholders will receive a 29% premium on the firm’s October 15 closing price, or ($7.61) per share. RBC will be using its cash reserves to fund the acquisition. “BlueBay is an ideal fit with RBC’s growing asset management business and we are confident that this transaction will benefit clients, employees and shareholders of both firms,” stated George Lewis, the group head of RBC Wealth Management, in a press release.|
BlueBay will maintain its operational independence and continue to manage its investments after the acquisition. “Our board is unanimously recommending this combination with RBC because of the clear benefits it affords the firm’s shareholders, clients and employees,” commented BlueBay chairman Hans-Jörg Rudloff. BlueBay shareholders will receive formal documentation regarding the acquisition in November, and BlueBay and RBC expect the transaction to close by December of this year.
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