Canada’s Scotiabank buys 14.9% stake in US regional lender KeyCorp for $2.8 bln

 Scotiabank (BNS.TO), opens new tab is buying a 14.9% stake in American regional lender KeyCorp (KEY.N), opens new tab for $2.8 billion, as the Canadian bank taps into the stressed regional U.S. banking sector for growth outside its saturated home market.

KeyCorp shares jumped 14% as Scotiabank priced the offer at $17.17 per share, a nearly 17.5% premium to KeyCorp’s last closing stock price. It will also be able to appoint two directors to KeyCorp’s board. Scotiabank’s shares were down about 3% in Toronto.