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Oppenheimer Holdings Inc. Message Board

  • tomvu44 tomvu44 Jun 9, 2009 1:29 PM Flag

    RBC on the hunt for Wealth Mgmt. and Cap Markets -

    Mr. Nixon directly quoted as saying they think regular banking (i.e. deposit taking and loan making) is going to be tough slog in US for a while, and in same interview mentions that he in the U.S., he likes wealth management, and sees tremendous opportunity for their cap markets business (and maybe others acquired??) Many have been calling for RBC, BNS etc. to snap up a Regions Financial type bank now, as an example - Nixon maybe playing poker, but put the regular regional bank acquisition idea, to rest for now, but his comments raise other bite sized eyebrows.

    Two accretive deals could be done. Raymond James or Oppenheimer Holdings.

    OPY is more High Net Worth, and Cap Markets, with growing mindshare in latter and solely U.S. focus.
    RJF is more Low Net Worth, also attractive, with smaller mix of capital markets, asset management and small but troublesome bank- Plus some good and bad overlap in Canadian cap markets and wealth mgt.

    OPY deal would be smaller, and prima facie accretive going forward. OPY has been trashing reported earnings in order to under pay CIBC on their 'earn out' fire sale. RJF has had somewhat of a poison pill in place... typically with either such deal, you'd need buy in from mgmt.

    In Full Disclosure: I've established a long position in OPY, and may do so in RJF as well.

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15.92Aug 24 4:02 PMEDT