Blackmont Capital says Bank of Nova Scotia's deal for Dundee Bank and a stake in DundeeWealth is "very attractive from a strategic perspective, as it aligns Scotiabank with a highly regarded domestic wealth platform in Dundee." Analyst Brad Smith figures Scotiabank is acquiring the 18 per cent piece of DundeeWealth at about 1.8 times book value. He sees limited near-term per-share profit impact for Scotiabank. "With three board seats and a right of first refusal on any future sale of the controlling interest, the acquisition positions Scotiabank to substantially expand its domestic wealth business should an opportunity present itself down the road," he writes.
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