BMO aims to lead more U.S. equity deals

Mon Jan 30, 2012 2:19pm EST
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By Pav Jordan

TORONTO (Reuters) - BMO Capital Markets wants to lead more equity deals in the United States as it builds out capacity south of the border, a senior bank executive said in an interview.

BMO, the investment banking arm of Canada's fourth-largest lender, the Bank of Montreal (BMO.TO: Quote), hired a new managing director and head of U.S. equity capital markets last week, the latest in a hiring spree that added 400 U.S. positions since 2010 alone.

New hire Michael Cippoletti joined the bank from Morgan Stanley. He will quarterback a team of investment banking staff that BMO built up even as other global banks retreated in the face of the financial crisis.

"There is a great market opportunity for us, with many global dealers being in a general state of downsizing," said Darryl White, BMO global head of equity capital markets.

"Where we would be doing a handful of book-run deals in the United States a year (now), we would expect to do multiples of that," White told Reuters in an interview.

BMO is already one of the lead underwriters in Canada, regularly securing a spot in the top five with market share near 10 percent.

It has less than one percent of the market in the much larger and more competitive U.S. market, but White sees significant room for growth.

BMO is targeting seven U.S. sectors: energy, technology, healthcare, business services, financials, industrials, food and consumer, real estate and financial sponsors.   Continued...

<p>A Bank of Montreal sign is pictured in downtown Ottawa in this March 3, 2009 file photo. REUTERS/Chris Wattie</p>