Further consolidation of the domestic mutual fund market occurred on August 29, 2000 when financial services consolidator First International Asset Management Inc. (FIAMI) of Toronto, signed a $101 million deal to acquire Montrusco Bolton Inc., of Montreal (MBI). The deal values MBI at $14.25 a share, payable in cash except for certain employees of MBI who will be receiving shares in payment. A certain number of employee-shareholders of MBI, representing together approximately 42 per cent of the outstanding shares, have executed a Support Agreement with FIAMI whereby they have irrevocably agreed to support and vote in favour of the arrangement.
Mailing of the Circular for the special meeting of shareholders of MBI is expected towards the end of September, 2000 and the meeting will be held in the first half of November, 2000.
MBI is being represented by Jean-Claude Bachand, Michel Brunet, Jean-Pierre Huard, Paul Dingle, Vitale Santoro and Jean Gagnon of Fraser Milner Casgrain of Montreal. Raymond Crevier, Q.C., of Ogilvy Renault’s Montreal office is acting for the Independent Committee of the Board of Directors of MBI. FIAMI is represented by Lawrence Haber, Gary Litwack, Bill Berger, Lori Axelrod, Peter Guselle, Robert Jason, and Elliott Vardin of Fogler, Rubinoff LLP of Toronto.