Canaccord, Genuity reported in talks

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Rumours that Canaccord Financial is on the prowl for an acquisition have gained traction.

The Globe and Mail reports that Canaccord is in talks with Genuity Capital Markets. The combination of the two firms would bring together Canaccord's expertise in junior resource companies and Genuity's deal-making acumen.

Citing unnamed "sources close to both investment dealers" the report says the deal would value Genuity at about $100 million, which would be largely paid in Canaccord stock.

Genuity may have an advantage in negotiations, as the firm specializes in providing advice in mergers and acquisitions deals.

Genuity was created in 2005 by a team of traders that left CIBC World Markets within days of each other.

The report comes one day after Canaccord issued a tersely worded press release in response to rumours., stating:

"...that strategic acquisitions are one component of the Company's growth strategy and, as such, Canaccord regularly evaluates potential acquisition opportunities. From time to time, this process leads to discussions with potential acquisition targets. There can be no assurance that any such discussions will ultimately lead to a transaction."

As one might expect, neither firm is commenting on the report.

(02/04/10)