Invesco Canada, one of the largest shareholders of Rona Inc., confirms it is backing U.S.-based Lowe’s $1.76-billion bid for Canada’s largest home improvement retailer.
Ian Hardacre, a portfolio manager with Invesco Canada says the company supports the bid.
“We are extremely disappointed in the management team [at Rona], and how they have run the company,” he told The Globe and Mail’s Shirley Won. “There has been an extraordinary misallocation of capital over the last five years.”
Meanwhile, the Quebec government vows to block the bid to take over the Quebec-based chain.
Quebec Finance Minister Raymond Bachand says the bid is not in the interests of either Quebec or Canada.
Rona has also rejected the bid from Lowes on the grounds it’s not in the best interest of Rona shareholders.
The deal would’ve given Lowes a bigger share of the Canadian home improvement market.