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Bill Holland, CEO of CI Financial
Bill Holland, CEO of CI Financial
(SIMON HAYTER/The Globe and Mail)

CI Financial's options now include dividend cut

CI Financial Corp. may cut its dividend or borrow to raise cash to buy back stock from Bank of Nova Scotia, which is planning to unload its 37 per cent stake in the mutual fund company.

The company is looking at its options now that Scotiabank has said it will sell the stake, worth about $3.8-billion at Wednesday’s close. CI said it “intends to review its capital structure and dividend policy to ensure that it has the appropriate resources available to respond to any monetization plan Scotiabank seeks to implement.”