US Fund Firms, Banks Vie for Sun Life's MFS

Scotia Capital, 13 October 2006Event� Yesterday CNBC reported Mellon Financial and Wachovia are both bidding for MFS, which we believe is likely to fetch a price tag in the US$3 billion range, with a deal expected to be announced in the next few weeks.What It Means� The reported US$3 billion price tag, or 15x 2006E earnings for MFS is 18% below our estimated value (18x or $7.25 per SLF share) and