C.I. Fund Management will not increase its bid of C$28.50 (US$18.40) per share to purchase Mackenzie Financial Corp., according to Peter Anderson, president of subsidiary C.I. Mutual Funds. On Tuesday, Mackenzie directors advised its shareholders to reject C.I.s hostile C$3.9 billion bid.
Mackenzie will continue to work with its advisers considering alternatives, including "a possible transaction with one or more third parties, Alan J. Dilworth, chair of the special committee dealing with the takeover offer of the Mackenzie board, said in a news release.
C.I. is the seventh-largest mutual fund manager in Canada, with C$24 billion under management in mutual funds and C$3.6 billion in institutional assets. A merger with Mackenzie, which has C$40 billion under management in mutual funds and C$1.6 billion in institutional assets, would form Canadas largest mutual fund company.