Ashleigh Rogers • 11 Comments
Stephen Simpson, CFA
Stephen Simpson, CFA
Oct. 13, 2015, 2:36 PM
- With a sluggish economy and low rates making for a challenging banking environment, lenders are subject to growing ranks of shareholder activists, reports SNL Financial.
- A bank with an ROE in the 5-6% range when the cost of capital is closer to 9% or 10% is going to make for a ripe target, says RBC's Gerard Cassidy. And those activists have an ally in proxy advisory firms which have recently been in favor of the shareholders instead of management teams, says Sandler O'Neill's Emmett Daly. Daly notes the pending sale of Metro Bancorp (NASDAQ:METR) to F.N.B. Corp. (NYSE:FNB) - Metro went from having no activists to a handful. "I don't think anyone is too strong," says Daly.
- Other campaigns include Trian and Bank of New York Mellon (NYSE:BK) and State Street (NYSE:STT), Greenlight and Citizens Financial (NYSE:CFG) and CIT Group (NYSE:CIT), and Basswood and First California (NASDAQ:FCAL), Bank of California (NYSE:BANC), Hudson Valley Holding (NYSE:HVB), Synovus (NYSE:SNV), Astoria (NYSE:AF), and the above-mentioned Metro.
Oct. 2, 2015, 11:33 AM
- The long-awaited regulatory approval of the M&T Bank's purchase of Hudson City Bancorp, and the relatively quick green light for BB&T's acquisition of Susquehanna Bancshares has lifted M&A animal spirits in the regional bank sector.
- Another possible buyer could be Regions Financial (NYSE:RF) - its done well on its annual stress tests, and has expressed a willingness to look into deals. There's also Memphis-based First Horizon National (NYSE:FHN), though at least one activist believes the bank is more target than hunter.
- Possible sellers include First Niagara Financial (NASDAQ:FNFG), which has already put itself on the block.
- A target for BBT or Regions might be Georgia's Synovus Financial (NYSE:SNV), with $27B in assets, and an activist investor pushing for a sale.
- Another target might be Astoria Financial (NYSE:AF), with $15.3B in assets, and a neighbor in New York Community Bancorp (NYSE:NYCB) which might be on the hunt for acquisitions.
May 6, 2011, 9:48 AM
Morningstar sees plenty of debt capital capacity available at attractive terms to fund leveraged buyouts, which should lead to resurgence in M&A activity among private equity groups. Its latest list of top takeover candidate investment ideas: ATLN, AKAM, AEO, CLWR, CLD, LEAP, MYGN, HK, RRC, SNV.| May 6, 2011, 9:48 AM