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The Scotiabank branch at 2080 Queen St. East in Toronto's Beach neighbourhood is photographed on March 5, 2014.
The Scotiabank branch at 2080 Queen St. East in Toronto's Beach neighbourhood is photographed on March 5, 2014.
(Fred Lum/Fred Lum/The Globe and Mail)

What’s CI worth? We’re about to find out

The opening bell will be a referendum on Bank of Nova Scotia’s plan to sell a $3.8-billion stake in CI Financial Corp., as there is a significant divergence of opinion on what the bank can get for the shares and the market is going to play a big part in settling that.

Bank of Nova Scotia last week told CI it planned to sell, and that one option was doing a secondary offering to shareholders of some portion of its 37 per cent stake. CI’s message back was that the market would choke on such a transaction, and it would cripple CI’s share price.