Great-West Offers $4.8 Billion For Canada Life
Great-West Lifeco Inc. has come to the rescue of Canada Life Financial Corp., Toronto, with a takeover offer worth about $4.8 billion in U.S. dollars.
Canada Life has been struggling to fend off a $4.1 billion offer from another Toronto company, Manulife Financial Corp.
Manulife says its offer is a good deal for Canada Life shareholders, given the low price of Canada Life stock, but Canada Life says the Manulife offer fails to reflect the value of its operations.
Canada Life has reported $84 million in net income for the fourth quarter of 2002 on $1.5 billion in revenue and $45 billion in assets.
Both Manulife and Great-West, which is based in Winnipeg, Manitoba, say acquiring Canada Life would help them dominate the Canadian life market and increase their presence in the United States.