Montreal Trust Company

Montreal Trust Company is a Canadian trust company established in 1889 by the Bank of Montreal. It was created within the institutional framework of Canada's expanding banking and fiduciary-services sector, with Donald Smith and Edward Clouston among the members of its original charter board. Over more than a century, the company moved through several periods of ownership and corporate restructuring, reflecting the consolidation of Canadian financial services. The company came under the influence of financier Paul Desmarais during a complex series of transactions involving Gelco Entreprises, Imperial Life Assurance Company, Investors Group and related investment interests. Investors Group acquired an initial stake in Montreal Trust in 1967, and that holding grew to approximately 24 percent by the following year. In 1968, Desmarais transferred the relevant interests into an arrangement associated with Power Corporation of Canada. Investors Group later increased its ownership to 50.5 percent in 1972, giving the Desmarais and Power Corporation network majority control. A further reorganization took place in 1982. Montreal Trust created a federally incorporated sister entity, Montreal Trust Company of Canada, and both companies were placed beneath a new federal parent, Montreal Trustco Inc. This structure brought the company's principal operations and corporate ownership under a consolidated holding-company arrangement. In 1989, BCE acquired control of Montreal Trustco from Power Corporation and subsequently obtained more than 99 percent of the company's shares. The transaction was valued at approximately $875 million, including consideration for Power Corporation's controlling interest and an offer for minority shareholders. BCE installed its own directors after the acquisition, but the business experienced significant financial difficulties during BCE's ownership. Losses were associated with loans to Olympia and York and Bramalea in 1992 and with holdings connected to Royal Trustco and General Trustco in 1993. BCE began looking for a purchaser in 1993. The Bank of Nova Scotia ultimately acquired Montreal Trustco in a transaction valued at $292 million, paid through 10 million Scotiabank common shares. The acquisition closed on April 11, 1994, and Montreal Trust thereafter operated as a Scotiabank subsidiary. Robert Chisholm succeeded John D. Thompson as president following the transaction. Montreal Trust's historical identity is therefore tied to fiduciary and trust services within Canada's financial system, but its corporate history is equally notable for the succession of major institutional owners that controlled it: the Bank of Montreal at formation, the Power Corporation network during the late twentieth century, BCE from 1989 to 1994, and Scotiabank from 1994 onward. Publicly available reference material does not provide a current standalone product catalogue, separate website, current executive roster, or evidence that Montreal Trust remains an independently listed company. Its present status is best understood as that of a Canadian trust-company business or legal entity within the Scotiabank group.

Montreal Trust Company was founded in 1889 by the Bank of Montreal. Its charter board included Donald Smith and Edward Clouston, figures associated with Canada's nineteenth-century financial and commercial establishment. The company's creation reflected the growing importance of specialized trust institutions, which administered estates, investments and other fiduciary responsibilities alongside the services provided by commercial banks. The ownership history became increasingly complex in the 1960s. Paul Desmarais built influence over Montreal Trust through a chain of transactions involving Gelco Entreprises, Imperial Life Assurance Company and Investors Group. Investors Group acquired approximately 15 percent of Montreal Trust in April 1967, exchanging shares with Canadian Pacific Investments. By March 1968, the position had grown to about 24 percent, and Montreal Trust absorbed Investors Trust Company, a wholly owned Investors Group subsidiary. The relevant holdings were subsequently placed within the Trans-Canada Corporation Fund and related Gelco structures. In 1968, Desmarais arranged an exchange with Power Corporation of Canada. Power acquired Trans-Canada, while Desmarais received a significant controlling interest in Power Corporation through Gelco. Investors Group later increased its Montreal Trust stake to 50.5 percent in 1972. This placed Montreal Trust within the wider Power Corporation network and gave that group majority control. Power reorganized the business in 1982 by creating the federally incorporated Montreal Trust Company of Canada. The existing Montreal Trust Company and the new sister company were placed beneath Montreal Trustco Inc., a federally incorporated parent. The arrangement consolidated the two corporate arms while preserving the Montreal Trust name. BCE announced an agreement in March 1989 to acquire Power Corporation's 63.8 percent interest. The consideration for that stake consisted of cash and BCE shares valued at $547 million, while minority shareholders were offered $23.50 per share. By late April, BCE held more than 99 percent of Montreal Trust's shares. At the company's May annual meeting, BCE appointed four directors and Power Corporation's representatives left the board. The BCE period was financially difficult. Montreal Trustco lost $78.8 million in 1992 in connection with loans to Olympia and York and Bramalea. In the second quarter of 1993 it recorded another $22.8 million loss associated with holdings of Royal Trustco and General Trustco. BCE retained Dominion Securities in the summer of 1993 to locate a purchaser. Canadian Imperial Bank of Commerce, the Bank of Nova Scotia and another unidentified bidder expressed interest. Scotiabank won the sale in December 1993. Its acquisition, valued at $292 million and paid with 10 million Scotiabank common shares, closed on April 11, 1994. Robert Chisholm replaced John D. Thompson as president after completion. From that point onward, Montreal Trust operated as a subsidiary of the Bank of Nova Scotia. Available reference material does not identify a current standalone management team, independent listing or separate corporate website, so the contemporary brand and legal status should be treated as part of the Scotiabank group unless more recent corporate records establish otherwise.

• 1994

  Scotiabank acquisition closes

  [1]Montreal Trust Companyen.wikipedia.org

  The Bank of Nova Scotia completes its acquisition of Montreal Trustco on April 11, bringing the company into the Scotiabank group.

• 1989

  BCE acquires Montreal Trustco

  [1]Montreal Trust Companyen.wikipedia.org

  BCE purchases Power Corporation's controlling interest and later holds more than 99 percent of Montreal Trust's shares in a transaction valued at approximately $875 million.

• 1982

  Montreal Trustco is created

  [1]Montreal Trust Companyen.wikipedia.org

  Montreal Trust Company of Canada is established as a federally incorporated sister company, and both entities are placed under Montreal Trustco Inc.

• 1972

  Investors Group obtains majority control

  [1]Montreal Trust Companyen.wikipedia.org

  Investors Group increases its ownership of Montreal Trust to approximately 50.5 percent.

• 1968

  Ownership interests move into the Power Corporation network

  [1]Montreal Trust Companyen.wikipedia.org

  A transaction involving Desmarais, Trans-Canada and Power Corporation places the relevant Montreal Trust interests within the broader Power Corporation structure.

• 1967

  Investors Group acquires an initial stake

  [1]Montreal Trust Companyen.wikipedia.org

  Investors Group acquires approximately 15 percent of Montreal Trust, beginning the ownership transition associated with Paul Desmarais and his financial interests.

• 1889

  Montreal Trust Company is founded

  [1]Montreal Trust Companyen.wikipedia.org

  The Bank of Montreal establishes Montreal Trust Company, with Donald Smith and Edward Clouston among the charter board members.

A Canadian fiduciary-services institution whose historical business was conducted within the broader banking and financial-services system and whose corporate operations became part of Scotiabank after 1994.

• Financial services

  Trust services

  Montreal Trust's core identity was as a Canadian trust company, an institution established to perform fiduciary and administrative functions involving estates, investments, corporate arrangements and related property or financial assets. The available reference material does not provide a detailed historical product catalogue or identify specific named consumer offerings.

• Trust services

  Corporate trust and fiduciary administration

  The company's corporate form and history indicate participation in institutional trust and fiduciary administration, including services associated with corporate structures and managed assets. Specific mandates, client segments and current service names are not documented in the supplied sources.

• 1994

  Scotiabank acquisition of Montreal TrustcoM&A

  Background

  BCE sought a buyer after Montreal Trustco incurred significant losses, attracting interest from several Canadian banks.

  Action taken

  The Bank of Nova Scotia acquired the company for $292 million, paid in 10 million common shares, with the transaction closing on April 11, 1994.

  Aftermath

  Montreal Trust began operating as a Scotiabank subsidiary, and Robert Chisholm replaced John D. Thompson as president.

  Transaction value. $292 million (1994 acquisition)

  Source

• 1989

  BCE acquisition of Montreal TrustcoM&A

  Background

  Power Corporation agreed to sell its controlling interest, while BCE sought to acquire the remaining shares from minority investors.

  Action taken

  BCE completed a transaction valued at approximately $875 million and obtained more than 99 percent of the shares.

  Aftermath

  BCE installed new directors, but Montreal Trustco subsequently experienced substantial losses and was put up for sale in 1993.

  Transaction value. $875 million (1989 acquisition)

  Source

• 1982

  Create a two-company Montreal Trust structureStrategy

  Background

  Power Corporation reorganized the business by adding Montreal Trust Company of Canada alongside the existing Montreal Trust Company.

  Action taken

  The two companies were placed under federally incorporated Montreal Trustco Inc.

  Aftermath

  The reorganization consolidated the Montreal Trust businesses under a common parent until the later BCE acquisition.

  Source

1. 1Montreal Trust Companyen.wikipedia.org