Bank of Montreal 1999 Annual Report Download - page 15

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Bank of Montreal Group of Companies 1999 Annual Report 13
Merchant Banking
The activities of our Merchant Bank will be expanded
to include a specialized North American focus in
our targeted sectors. The provision of private
equity
will allow us to provide a full suite of services
to
clients when and where they need them
—
and earn
an attractive return for our shareholders.
Delivering on Promises
Being a good business partner means delivering
innovative products and services when our clients
need them
—
which in our business is usually on
very short notice. Our goal is to continually demon-
strate superior industry knowledge, deliver creative
financing solutions and provide timely and compet-
itive responses as well as the best, most consistent
execution possible. In 1999 we executed a number
of landmark transactions that demonstrated our
ability to assemble the right mix of products and
expertise and deliver superior service.
Highway 407
For our clients to win the highly contested bidding
for Highway 407, we had to deliver a complex and
variedsetofskills,expertiseandcapitalfromnumer-
ous
groups across Bank of Montreal and Nesbitt
Burns —in a highly co-ordinated fashion under
extreme time pressures. Our ability to do so helped
our client, a consortium comprised of Grupo
Ferrovial of Spain, SNC-Lavalin and Caisse de dépôt
e
t placement du Québec, successfully win the
auction and complete the purchase of Highway 407
from the government of Ontario for $3.1 billion.
BCE/Ameritech
Relationships matter. When BCE Inc. went looking
for an advisor to assist them in the execution of
their strategic long-term growth plans, they turned
to Nesbitt Burns. A long-standing relationship, the
capability to provide strategic perspective and
advice and Nesbitt Burns’ negotiating and structur-
ing experience helped BCE Inc. strike a partnership
with Ameritech Corp., resulting in the latter acquir-
ing 20% of Bell Canada for $5.1 billion.
Life Insurance Demutualizations
Nesbitt Burns has played a lead role in transforming
the life insurance industry through demutualiza-
tion. We were selected as financial advisor and lead
underwriter for three of Canada’s five announced
demutualizations. In each of these assignments,
Nesbitt Burns assembled a multi-disciplinary team
of investment bankers, equity capital market spe-
cialists and equity research professionals to provide
the advice and execution capabilities needed to
complete the complex process of demutualization.
Nesbitt Burns clients Clarica Life Insurance Co.
(formerly Mutual Life of Canada) and Canada Life
have successfully completed their respective $951 mil-
lion
and $455 million initial public offerings, and
Industrial-Alliance Life Insurance Co. is scheduled
to complete its initial public offering early in 2000.
Putting People and Values First Produces
a Superior Client Focus
To deliver a consistent, high-quality service we
must attract, develop and retain the best and bright-
est people in our industry. Our emphasis on people,
culture and values produces an environment that is
both demanding and rewarding, one that is based
on succeeding through creating value for our clients.
I
t’s a powerful formula.
The Reality of a Constantly Changing
Business Environment
By definition, if you’re standing still in investment
banking
—
you’re moving backwards. The forces
of technological change, the commoditization of
products, the continuing trend to globalization and
our clients’ desire for the bundling of services
challenge us to respond in new and innovative ways.
We thrive on these challenges.
Highway 407
Bank of Montreal and Nesbitt Burns
played key roles in this transaction,
including delivery of critical advisory
services and the provision of:
$2.3 billion senior bridge finance facility
$150 million subordinated loan
$1.1 billion initial public debt offering
–
the largest corporate bond offering
in Canadian history
$650 million real return bond
$400 million additional public
debt issue.
More information on Investment Banking Group is available
on page 55 of the Management Analysis of Operations.