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SunTrust Banks, Inc. Message Board

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  • doctorbobphd doctorbobphd Jul 15, 2003 5:08 PM Flag

    Citi & STI

    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.

 
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