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SunTrust Banks, Inc. Message Board

  • hack_saw90 hack_saw90 Jul 14, 2003 6:19 PM Flag

    Citi & STI

    More fuel for the fire.

    Sunday PM, CNN FN noted Citi performance and possible acquitions -- mentioned were:

    Fleet Boston

    and (Drum roll please......)

    SunTrust !!!

    Makes more sense that a left coast bank - Wells.

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    • uncle_bens_perverted_rice_too uncle_bens_perverted_rice_too Jul 15, 2003 6:37 PM Flag

      You need to check first with your dog before making such stupid comments.

    • Did it occur to you that people who post on this board might know quite a bit more than you evidently do?

      Get real, SunTrust is in a bind. They cannot let things "go South" so to speak.

    • Your comment requires no response from me or anyone else. You make your level of comprehension and understanding of reality quite evident to anyone with an IQ of at least 60. Even my dog could figure this out.

    • uncle_bens_perverted_rice_too uncle_bens_perverted_rice_too Jul 15, 2003 6:02 PM Flag

      Doctor, you stupid dipshi*t, why dont you CALL Phil Humann's office and ask those questions.

      Do you think it might be entirely possible that Citibank is NOT interested in SunTrust?
      Citibank may chose to enter the SE via BBT, SOTR, ASO, not necessarily SunTrust.

      Your comment about SunTrust being built to be sold was moronic. SunTrust is the LAST of the big Atlanta banks that has not been acquired. It was not built to be sold, idiot.

      Doctor, why dont you take your SunTrust stock and shove it where it needs to go.

      IMHO

    • the_stairway_to_freebird the_stairway_to_freebird Jul 15, 2003 5:11 PM Flag

      Humann says "banks are not bought,they are sold".Just my opinion,but if STI is sold,C obviously could be the buyer to accomodate the seller...easily,but still question in my mind if they would pay a sizeable premium while I believe some others would.And could be potential cultural issues--from the top down...a Southern regional selling out to the consummate New York money center bank.If they were to offer the best price,good corporate goverance would seem to say it would be C if as it appears that their problems are essentially behind them.Buffet dropped off their board for whatever reasons and since he has a stake in STI...maybe the intangibles would play a big role.Wonder if rebuffed if they would pursue a hostile offer.What an incredible turn of events that would be post WB.

      Like you I don't count out BAC,even though it's been shown here the deal wouldn't fit under the deposit rules--would be over 10%.If both banks wanted it to happen they might be able to find a way to make it happen.As you've pointed out numerous times,strategically,it would limit those without a presence in the region to limited opportunity.Huge cost savings but a lot of pain.BAC has made the transition to a powerhouse...its stock may have a lot of upside,the dividend is strong,it has the products,a low efficiency ratio(51.73),strong ROA(1.42%),and large cash to compliment to a stock offer to buy whoever,like C.

      WFC has been rehashed so much...just say my opinion is it would be a great fit but they are tight on premiums.Like C,a very disciplined buyer yet I believe investors have held the stock down believing WFC would make a major purchase--so post acquisition the stock could have a lot of upside,if investors like the deal.They say they are staying West but gotta believe they would make an exception for the right acquisition.Buffet effect here?

      Seems there's only one other poster that questions whether or not a STI/BBT deal would necessarily be good for shareholders..nothing to add.

      The others,whether they say they are on the hunt or not,like ONE,USB,HBC,etc. probably would jump at a good opportunity so still think there will be some major acquisitions announced before yearend.All the message boards have C,BAC,WFC,and HBC buying somebody or everybody else.Maybe one of the posts is actually right.

      As you say..."stand tuned".

    • The more I think about it, Citi buying SunTrust is so logical. Think about it. If SunTrust acquires a smaller bank or does a "MOE" deal with BBt, what have they got? Just a bigger version of what they have now. They don't have the diversification. They don't have credit cards. They don't have investment banking.

      For SunTrust (and its shareholders), it makes so much sense to simply sell now to Citi.

      Look at it this way. Suppose SunTrust managements sits there and resists a buyout. Then Citi says "ok" and goes another route. Then what do we have? We have now elimianted Citi as a buyer. How much sense does that make?

      No, SunTrust was "built" to one day sell out. Not to operate as an independent forever. And the day has arrived for SunTrust management to do the very thing that they built their business for in the first place -- to sell it.

      The hostile bid to buy WB was an act of desperation. That was the Swann Song. Now they have to sell. Who can buy them? Citi, BAC (although BAC hasn't been smart enough so far to see it), Wells, or Bank One. Those are the choices. The shareholders have to look at what they want. Any rationale shareholder would prefer Citigroup, no question about it.

      Citi's stock is up. SunTrust's stock is flat and will stay that way. This is a deal that should happen. If it doesn't, questions will have to be asked.

    • agree that this is the most likely combination at this point, with WFC a close second. However, as someone alluded to below, the timing doesn't seem to be right. I think STI management believes economic turnaround will have a greater than proportionate impact on STI and are waiting on that while trying to cut costs to remain attractive.

    • SunTrust is a major power in the Washington,DC metro area and in Florida, and has a significant asset management business.

      These are two places that Citigroup absolutely wants to be. What options does Citi have? Does anyone think they are going to buy WB? Or BAC? SunTrust is the logical choice for Citigroup.

    • the_stairway_to_freebird the_stairway_to_freebird Jul 14, 2003 8:43 PM Flag

      Wonder if they meant to instead say State Street Bank(SST)about which there has been a good bit of speculation.'Cause C/State Street has been on all the channels/press and haven't heard or read the C/STI comment elsewhere in the media...ironic that the symbols are so similar.

      Having said all that,anything is possible.

      • 1 Reply to the_stairway_to_freebird
      • This is my first time posting although I have followed the board for awhile and, like most, find some posts informative and some amusing. I'll try to stick to the informative angle. I have been a long term follower of STI and am very familiar with the banking/financial service industry as a whole.

        I'll share my opinion on merger/buyout candidates first. First the BBT question. The positives of a BBT deal would be the good fit with STI from a geographic and business line perspective. No suprise that adding the Carolinas and bolstering mkt. share in the overlapping areas would be a plus. Significant costs could also be extracted from the overlapping markets. The first obstacle is the differing operating structure between the two companies. BBT is still very decentralized while STI, as we all know, is trying to centralize its markets. This would make integration a challenge, although its not a deal killer. The bigger obstacle is that I just don't believe BBT is ready to merge yet and if so I believe they, and the markets, would want BBT to be the surving entity. This last issue would most likely cause issues for the guys at the top of STI. I think the market would like BBT to run the show given their greater experience, and track record in acquisition integration.

        Candidates for a buyout have, I believe, been correctly identified on this board as Wells, Citi, and Bank One. A deal with Bank One will not happen. First, Phil and Jaimie, I believe, would clash from a personality perspective limiting their ability to get something done. Second, I don't believe SunTrust shareholders would be pleased with receiving Bank One stock in a transaction given its checkered past. Citi- Could happen because of their desire to get into SE market especially Florida. Strong currency and track record but this would come at a higher price for current STI employees (i.e. layoffs). Wells - The deal makes alot of sense for Wells because of the geograpic area they would pick up and complementing business focuses (except Corp/Inv. Banking). Obviously their currency (stock) has been a very good performer which would help convince STI holders. I also believe it would be the least disruptive to current STI employees. I believe that Wells has most likely approached STI on at least one occasion if not more and were rebuffed.

        For various reasons, I believe these are the viable candidates. Whether something gets done is a whole other question. I think Phil believes the economy will turn, rates will rise,one bank savings will materialize and things will begin to look better. I also believe that a large premium for STI is not likely giving the current environment. Both these issues make a deal in the near term tough. Longer term, I believe something will have to occur and we can discuss that if anyone's interested.

 
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