Canadian Western Bank shares sank after the firm delayed its fiscal fourth-quarter earnings release Friday morning and left investors guessing why.
Geoffrey Morgan, Bloomberg NewsNational Bank stock is showing bearish momentum as it nears its takeover of Canadian Western Bank. Stock analyst John Aiken explains.
Shares of the Alberta-based bank plunged 5.4% Friday, erasing over C$300 million in market value for its biggest single-day fall since May 2023 to close at C$55.59 in Toronto. The lender issued a news release at 2:40 a.m. saying it plans to report the results by mid-December and canceling a scheduled conference call.
Rohinton’s fund doesn’t own CWB, but said Friday’s share price drop is likely being exacerbated by merger-arb funds betting on a slightly lower likelihood that the takeover by National Bank of Canada will be completed as expected. National Bank won approval for the deal in September from Canada’s competition body, but still needs the federal government to sign off.
Rohinton said investors are trying to parse what could have caused the delay, from potential “gremlins” in the accounting to the possibility that a small bank with 2,500 employees was working to close a deal, finish an audit and report results “and it went all the way to the 11th hour.”
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