IPC Financial receives unsolicited offer

(September 23, 2003) The recent wave of consolidation in Canada’s mutual fund industry shows no sign of letting up. In the latest development, IPC Financial Network announced today it has received an unsolicited proposal for a strategic transaction.

The name of the bidder was not revealed. IPC says it has hired Scotia Capital to evaluate the offer and the IPC board has appointed a special internal committee to assist in the process.

“Given what has taken place in the industry in the last few weeks, we are not surprised by the interest expressed in our company and would seriously consider a transaction that made sense for our advisors, shareholders and clients,” said IPC CEO Steve Meehan.

Last week, Berkshire and TWC Financial announced a merger. Berkshire’s owner, Michael Lee-Chin, has not ruled out the possibility of further acquisitions. Lee-Chin also owns AIC Funds.

In late August, CI Funds took over Assante in an $846 million deal. Industry insiders say Cartier Partners is currently entertaining three takeover offers. Rumoured suitors for Cartier include Power Financial, Manulife and Desjardins.

Earlier this year, Dundee Wealth Management announced it was acquiring IPC, but the agreement collapsed due to regulatory complications.

Since then, IPC has restructured its operations to reduce costs and perhaps make the firm more attractive to potential bidders.

What do you think of today’s development in this wave of consolidation and takeovers? Care to speculate on who is interested in IPC? Share your thoughts and opinions on this or any other topic related to your industry in the Talvest Town Hall on Advisor.ca.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca