- MB Financial (MBFI +0.3%), already in a pact to be bought by Fifth Third (FITB +0.4%), may garner interest from a large U.S. or Canadian bank that already operates in Chicago, but a hostile bid isn't likely, Bloomberg reports, citing a note by KBW analyst Brian Klock.
- A potential buyer's stock would suffer if it announced a hostile bid, Klock says, noting it would entail low EPS accretion, large tangible book value dilution, and long earn-back period.
- Potential bidders: Huntington Bancshares (NASDAQ:HBAN), PNC Financial (NYSE:PNC), U.S. Bancorp (NYSE:USB), as well as Bank of Montreal (NYSE:BMO) and Canadian Imperial Bank of Commerce (NYSE:CM).
- The value of the MBFI deal has declined as FITB shares are down 12% since the pact was announced. About 90% of the consideration is in stock.
- Previously: Fifth Third to take 'sizeable hit' from MB Financial purchase: Jefferies (May 21)