A hostile takeover bid for Mackenzie Financial of Toronto has put Canada's fifth largest Canadian fund company in play. What remains in doubt is whether the victor will be the opening bidder, C.I. Fund Management of Toronto. There is widespread speculation that a rival will come forward, either from within or outside Canada.

C.I.'s CAN$3.8-billion offer is to be mailed to shareholders in late November. It is subject to the tender of two-thirds of Mackenzie shares on a fully-diluted basis. No single shareholder has enough shares to block the deal on its own. The largest single block of Mackenzie shares is a 24.7 percent stake held by AIC Ltd. of Burlington, Ont., mainly in mutual funds that it manages.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.