real-time news and commentary for investors
Wednesday, Sep 18
NewStar Financial jumps on M&A speculation
- Shares of NewStar Financial (NEWS +13%) climbed after speculation swirled that P-E owners Corsair Capital and Capital Z Partners are exploring a sale of the specialty financing company, Bloomberg reports.
- Janney Montgomery Scott analyst Sameer Gokhale opines, "This company is a prime takeover target." Banks trying to shore up profits in a low IR environment see business lending as a lucrative, albeit high risk, opportunity.
- Business lender CapitalSource was sold to PacWest Bancorp in July for $2.3B. At that multiple, NEWS shares could fetch $18.21 according to Bloomberg, which speculates that "logical buyers" include EverBank Financial, BankUnited, and TCF Financial.