Scotiabank Follows Through On Growth Plans With KeyCorp Deal (3)

Bank of Nova Scotia is making good on plans to invest more capital in the US with a $2.8 billion deal for a minority stake in KeyCorp, which was among the US regional banks hit hardest in last year’s tumult.

Scotiabank will acquire 14.9% of Cleveland-based KeyCorp in two separate tranches by buying shares at $17.17 each, representing an 11% premium to their volume-weighted average price over the past 20 trading days, it said in a statement Monday.

KeyCorp rose as much as 17% in early trading in New York Monday, and was up 8.8% to $15.90 at 2:14 ...