I wouldn't be so sure. STI is making internal moves to position themselves to be more cost efficient. These moves could position them for a potential buyout or be the buyers. The new leadership team has great vision and a clear direction where they want to be. I'm all in with my chips.
BMO will look to acquire STI. The Southeast will be a U.S. growth engine over the next decade and BMO wants to capitalize. BMO views this as a great opportunity and views STI as a premier Southeast franchise, excluding mortgage woes that will be resolved over next 5 years. Large number of Canadians in the Southeast will add to retail growth post acquisitions. Immediate elimination of top heavy STI management structure dramatically improves profitability under very efficient and effective BMO operating model. BMO will be willing to pay more than what the market feels is appropriate. IMHO this investment will pay off significantly for BMO. This is my opinion. I have no insider knowledge.