Posted on 03/10/07
TD leans heavily on the little guy to fund its high-profile acquisitions
Where would Ed Clark be without his loyal retail base? Probably not making splashy acquisitions in New Jersey.The Commerce Bancorp deal looks like a good one, but it's a lot easier to pull off with the kind of multiple Mr. Clark, TD's CEO, enjoys. Before yesterday's news, according to Thomson Financial, TD had the highest price-to-earnings ratio of all the big five banks, even RBC. A high Canadian dollar is nice, but when three-quarters of the deal is paid in stock, a high valuation is nicer. Does the bank deserve its multiple? Investors certainly think so, and the numbers are compelling.
The full text of this article has 760 words.
To continue reading this article, you will need to purchase this article.
Already have a member account? Login now
Pay-Per-View Offers To read the complete article, select one of the following options
Purchasing from globeandmail.com is quick and secure.
