Assante shareholders endorse CI takeover

(November 7, 2003) Assante shareholders have overwhelmingly endorsed the company’s plan to accept a takeover bid by CI Funds. At a special shareholder meeting on the trading floor of the old TSE, 99.6% voted in favour of the deal.

Under the deal, Assante will split its Canadian retail operations from its U.S. high net worth business, with CI buying the Canadian unit. Assante founder and CEO Martin Weinberg will take most of his management team to the newly incorporated U.S. firm.

“We had, as part of our plan of arrangement, two years to switch the name,” said Weinberg. “After switching the name of the parent company to Loring Ward International, the company is currently contemplating rebranding the whole company before the end of the two years.”

In Canada, the man tapped as the new head of CI’s Assante division says the Assante brand is staying put.

“It’s a very strong brand right now. They’ve put a lot of time and effort behind it so, as far as I know it remains Assante,” said Joe Canavan. “You’ve had a company that was very focused on growing the business through acquisition. You’ve got 20 companies together on a single platform and it’s been management’s job in the last three years to consolidate that. I think they’ve done a remarkable job in tough times.”

Weinberg says he is unaware of any immediate cost-cutting plans, which is always a concern for employees in a takeover. He says that the team assembled under the Assante banner is what made the company such an attractive target for CI.

“I think that we have a lot of very strong people. The company could not have been built as it was in eight years from nothing without having very talented and special individuals,” he said. “As [CI] get to meet them I think they’ll find that the greatest asset was the people and not the money of our clients.”

As for Assante’s advisors, who are also shareholders, Weinberg says the deal is a win-win situation.

“I think from the practice point of view, nothing will change other than they will gain broader access to products,” he said. “From a shareholder perspective it will be better, stronger, more liquid and they’ve all got the option to hold onto their U.S. shares.”

What do you think about this takeover? What changes are in store for Assante advisors? Will the Assante brand survive? Share your thoughts about this topic in the Talvest Town Hall on Advisor.ca.

Filed by Steven Lamb, Advisor.ca, slamb@advisor.ca