I don,t know about the info I am getting. One person says nothing in the works and the other says they are talking with Wachovia (WB). Who knows? Both people work for the same bank. The one that is a supervisor says nothing in the works but she may have been told to keep it quiet.Ha. Do you know anything about WB? I thought that was was a small group.
No one, I repeat, no one, will know about FVB getting bought out except the board. I know the FVB board and they are extremely good at keeping things hush, hush. I know a lot of people, from the top to the bottom, that work at FVB. As for WB being a small outfit, sorry, it's one of the largest in the Nation. As for WB buying FVB, not a chance, way too much overlap. Too many branches would have to be shut down and thousands of employees would lose their jobs. WB wouldn't like that bad publicity. BB&T is my guess as an aquirer or a merger of equals may be in the works with a Tennessee bank. FVB has branches in TN but not a strong presence. A TN bank would be a strong suiter. It would also help with ego's. FVB wouldn't be selling out if they merged with another institution of equal size. Falls Church, it's all about ego's.
First Tennessee Bank or First American or Natioanl Bank of Commerce....how about SunTrust.....anyone know if there is much overlap of branches between FVB and CF?? FVB SW Virginia would help to plug the gap from Tennessee to middle Virginia that there market will have after the CF acquisition.
I agree with you assesment of BB&T as the most likely buyer. They really want to get into the VA market, and there is only one game in town (flawed though it is). My model is saying they could pay $70 - $72 for FVB. The model said $80 -$85 about three months ago (when both stock prices and FVBs forecast future earnings were higher). As much as I dislike the mgt., I am playing the 'only bank of size left in VA to buy' game, and would gladly take the $70. Will the board swallow and take an offer like this? I understand the CEO's comp package was changed recently to make a change of control more lucrutive to the big guy. I have also heard, though can not confirm yet, that a mutual fund that is known to strong-arm banks into "doing the right thing for shareholder value" has taken a large position in FVB. All this is good, but I fear we may have another TRMK on our hands, where mgt. likes being king and won't sell (and stays in power by taking care of their "friends" on the board...) Is this the case? I don't want to "go to the low 50s and stay there for 2 years!!"
my feeling is that Wachovia is probably not the suitor. It's hardly been a year since W bought Central Fidelity Bank and Jefferson National. Jefferson had a good market in the central Va. market around Charlottesville, but CFB was statewide, and many considered it a good franchise. The word I heard however was that W had trouble integrating CFB because of technology lags, and also paid some quite generous severance and early retirement incentives. First Va. makes CFB look like an innovative technological leader, and I'm not sure W wants to take that tumble again, especially this soon. The rumors I hear say the suitor is BB&T who would be covetous of FVB's northern VA market.