TORONTO - Bank of Montreal has confirmed it's offering to buy a U.K.-based investment manager in a cash deal valued at $1.3 billion.
F&C Asset Management PLC revealed on Monday that it was in advanced discussions with the Canadian bank (TSX:BMO).
The bank is offering 120 British pence for each share of F&C, which is about 28 per cent above the stock's closing price last Friday before news of the talks became public.
The friendly deal is being supported by the U.K. company's board but will require shareholder and other approvals.
The companies expect the deal to close after May 1.
Bank of Montreal says the U.K. company will help grow its asset management business.