Asset manager falls to Canadians

Canada's biggest bank said yesterday it was offering 485p for each BlueBay share, representing a premium of 29 per cent above its

closing price of 375.70p on Friday.

Royal, along with Canada's other big banks, survived the global financial crisis relatively unscathed, and is now looking to grow its international operations at a time when many US and European banks are still struggling to recover.

The bank has previously signalled it was eying wealth management opportunities in Europe.

The acquisition of BlueBay, which is one of Europe's leading bond fund managers, will add about $40bn to the C$200bn RBC's wealth management division already manages.

"Our combination with BlueBay is a significant step in establishing leadership on a global basis in asset management," George Lewis, RBC's head of global wealth management, said.

The bank expects global wealth management to grow at a faster pace than other bank sectors, driven by a huge retirement-age client base and a growing high net worth segment.

BlueBay shares rose 29.7 per cent to 487p, pushing the stock slightly above RBC's offer price. However, analysts suggested the transaction looked like a done deal.

"This price looks very full and may not leave room for any counter-bidders," Oriel Securities analysts said in a note.