Harvard Winters
Long/short equity, growth at reasonable price, value

Why New York Community Bancorp May Be Priced Out Of The Acquisition Game

Back in March, I wrote about the unbridled optimism embodied by some fans of Westbury, NY-based thrift New York Community Bancorp (NYSE:NYCB). Two new examples recently appeared. First, in a report dated August 6th, Morgan Stanley Ken Zerbe posited that if NYCB could find a deal that was accretive to EPS, protected the dividend and avoided tangible book value per share ("TBV-PS") dilution, such a deal could be "transformational." Second, on August 21st, Sandler O'Neill analyst Mark Fitzgibbon speculated that if M&T Bank's (NYSE:MTB) $3.8 billion deal for Hudson City Bancorp (NASDAQ:HCBK) fell through (the deal was announced nearly a year ago, on August 27, 2012; regulatory issues at MTB have prevented the deal...

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