The proposed HSBC Canada acquisition of HSBC, which would be the largest domestic bank acquisition in Canadian history, could leave shareholders vulnerable, analysts warned late Monday.
As a result of the deal, Royal Bank might be forced to cut its dividend or issue shares.
Royal Bank of Canada is considering purchasing HSBC Canada — the second-largest bank in the country — for $13.5 billion.
The merger would occur when the Canadian financial system is already at extraordinary debt levels.
