Saturday, August 23, 2008

CI Financial units benefit from deal speculation

TORONTO - Units of CI Financial Inc. jumped more than five per cent Friday as the mutual-fund management company confirmed it has had discussions with a number of parties over the past few months concerning possible strategic combinations.

Almost 250,000 units were traded - more than twice the amount of the previous day - following a report in the Financial Post that said CI and the Bank of Nova Scotia were in talks regarding a deal in which Scotiabank would sell its mutual-fund division to CI in exchange for an equity stake.

In its statement, CI added a cautionary note, stating "there is no certainty that any transaction will be completed."

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