Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Bank of Montreal (Fernando Morales/Fernando Morales/The Globe and Mail)
Bank of Montreal (Fernando Morales/Fernando Morales/The Globe and Mail)

BMO free and clear of raising equity for M&I Add to ...

Bank on Montreal has freed itself of having to issue any equity to support its $4.1-billion (U.S.) purchase of Marshall & Ilsley Corp.

Back in December when the deal was first announced, BMO said it would likely need to raise about $800-million in common stock before the transaction closed to keep its Tier 1 capital ratio in check. That number was then lowered to $400-million when the bank released its first quarter earnings.

More related to this story

On Tuesday the need for that $400-million was wiped out. In an announcement that cleared the bank of all regulatory hurdles for the purchase, BMO also said it no longer needs to raise any common equity because its capital base has remained strong.

That's good news, as the deal is closing in about two weeks, but the market largely expected this would be the case, noted Barclays Capital analyst John Aiken, so not much changes.

Follow on Twitter: @timkiladze

 

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories