Reprinted from Caribbean Net News
caribbeannetnews.com

Scotiabank may buy Puerto Rico's First BanCorp

Tuesday, January 30, 2007

by: Sean B. Pasternak

TORONTO, Canada (Bloomberg): Bank of Nova Scotia, Canada's third-largest bank, has offered to buy First BanCorp of Puerto Rico, UBS Canada analyst Jason Bilodeau said, citing an article in the Caribbean Business weekly newspaper.

First BanCorp has 138 branches through its FirstBank subsidiary, including 11 in Florida, Bilodeau said Monday in a research note to investors. An acquisition would increase Scotiabank's share of loans in the country to 13 percent from 3 percent, the analyst said.

Scotiabank, which has operations in about 50 countries, has said it will make acquisitions in regions where it already does business. The bank has invested more than C$1 billion ($845 million) on international purchases in the past year, buying banks in countries including Peru and the Dominican Republic.

"Adding to its presence in Puerto Rico could be a favorable move," Bilodeau wrote. First BanCorp, based in Santurce, has a market value of $842 million.

The stock had declined 25 percent in the past 12 months before today. The bank restated earnings from 2000 to 2004 following an accounting review of some mortgage-related transactions.

Scotiabank spokesman Frank Switzer declined to comment.

First BanCorp spokesman Alan Cohen didn't return a phone call seeking comment.

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