Cartier rumours abound in Talvest Town Hall

(October 10, 2003) Rumours continue to fly in the Talvest Town Hall over the fate of Cartier Partners Financial Group, including speculation that a deal will be announced by the end of the month.

Things heated up when a user identified only as “Industry Specialist” offered his two cents.

“There will not be many buyers for Cartier. A lot of industry players are waiting for the purchase to poach branches and advisors,” said the forum participant. “The reason Assante and IPC were appealing was because the ‘key advisors were locked in agreements.’ No such thing exists at Cartier… [Cartier] will probably sell for a lot lower than current trading price.”

This prompted a flurry of dissent from users who questioned Industry Specialist’s motives.

Another participant using the pseudonym “Tally Ho” countered with the belief that no one was interested in Cartier, saying, “Richards stated recently in the [Globe and Mail] that there are several bidding companies. Expect things done this month. Cartier may be messy but it is massive — the biggest out there. Fifteen billion dollars in [assets under administration] and tons of market penetration.”

“Rumour Monger” said that the threat of advisors leaving Cartier and taking their book elsewhere was being overplayed, pointing out the difficulties involved in such a move. He also offered his insights on what many see as the main reason not to buy Cartier, “As for profitability, that’s not the greatest concern: distribution has never been wildly profitable — fund management is. But fund companies are starting to realize that they must preserve and support their distribution channel. If all unprofitable broker-dealers were allowed to fold, only the bank-owned firms would be left. And guess what? They wouldn’t be selling AIC, AIM, Franklin, Fidelity, Mackenzie or CI. Why would they?

“That being said, Cartier is one back office and half a market cycle away from making [money]. Look for the buyer to supply the back office,” said Rumour Monger.

Share your thoughts on takeover rumours, regional investing or any other topic concerning the advisor community in the “Free For All” forum of the Talvest Town Hall on Advisor.ca.

Filed by Steven Lamb, Advisor.ca,

(10/10/03)

The opinions expressed in the online messages posted to any of the forums of the Talvest Town Hall are strictly those of the participants and do not necessarily reflect the views and opinions of the staff of Talvest Fund Management, Advisor.ca or Rogers Media. Material contained in the Talvest Town Hall forums is for information purposes only.