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Toronto bank towers and skyline Nov. 10, 2010.
Toronto bank towers and skyline Nov. 10, 2010.
(Moe Doiron/The Globe and Mail)

MDC’s offering a money loser for buyers

That math doesn’t look pretty for Bank of Montreal after a bought deal gone badly on behalf of MDC Partners Inc. founder Miles Nadal.

The transaction was announced Monday, when shares of the advertising holding company closed at $25.02 (U.S.) on the Nasdaq. BMO bought 3.5 million shares from Mr. Nadal for $23.14 apiece, or about $81-million, according to a pricing supplement for the bought deal transaction filed Thursday evening, as the transaction was getting set to close. The plan was to resell that stock to investors.