This buy out may be real. People Bank is going up for the last week even if
Dow Jones is going down considerably. WF has a cash of 34 B.
It is a South Korean Company.. Is it real they want to buy this Bank.
Take-over-mania has afflicted this stock many times before, and it's doing it again. It looks to me as if First Niagara is getting the same boost. Regionals become super-regionals by buying up smaller banks in their area and then selling out to one of the money-center banks at a premium. The trouble is, it doesn't always work out well for the shareholders. For example, take a look at NorthFork BanCorp that was taken over by Capital One for a virtually zero premium. Conventional wisdom was that they should have gotten about a 20% premium. Instead, senior management gave the bank away in exchange for highly inflated salaries under new employment contracts for themselves. This one could go either way, but I don't trust the senior management of this bank. They'll enrich themselves at the expense of the shareholders and laugh all the way to the bank.