I need some help with this


I’m new. Whatever. I under that Bmo raised their stock to incise a buy. Is this buy worth it? Will the stock dip in the morning?

The article is below. I guess I’m asking how do I even research—- will this make the stock explode to the moon, or will everyone assume they made the stock rise to get acquisition. Should I sell at bell ring? My gut is telling me to take my wins and gtfo. Im not sure where to look. Also—- do I set up a 50% of holds sold at bell ring to be safe? Thank you in advance. Im just not sure how to take this news.

Article:

BMO raises cash it needs for Bank of the West acquisition

 BMO raised the cash it needs to pay for its proposed $20.5-billion acquisition of Bank of the West on Tuesday by selling $2.7-billion of stock.

BMO staged one of the largest bought deals ever done in Canadian markets, issuing 18.125 million shares at $149 each to a syndicate of investment banks late Tuesday. In this type of financing, investment banks purchase shares from a company such as BMO at a set price and take the risk that they can then sell the stock to investors.

The equity offering came after BMO’s share price rose by 17 per cent since late December, when the bank announced a friendly takeover of San Francisco-based Bank of the West and its 500-branch network.

Bank of the West is currently owned by French giant BNP Paribas, which is selling the division to focus on expansion in Europe. The takeover is expected to close by the end of the year.

BMO is funding the bulk of the planned acquisition – the largest takeover of a U.S. bank by a Canadian buyer – with excess capital on its own balance sheet and Bank of the West’s. When it announced the transaction in December, Toronto-based BMO said it would raise $2.7-billion from a stock sale to pay the remainder of the purchase at some point this year

Early this month, analysts asked BMO chief executive officer Darryl White about the timing of the equity offering during a conference call. Mr. White said: “We have had investors express some interest and say to us that they’re there when we’re ready. So we’ll just take it all into consideration, and we’ll pick the time that we think is best for our shareholders.”


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