you are viewing a single comment's thread.view the rest of the posts
I'm probably not as smart as you, DCVA Banker, wow a banker in two states.... but dumb old me thought banks bought other banks using stock...????? So what de hell does a $10B shelf offering have to do with BBT being bought? I would think someone as knowledgeable as you knows that shelf proceeds are used for regular business purposes......
Oh, also, it's late so don't lower yourself to point out errors in grammer or spelling...
Yes actually a shelf registration can be a precursor to an acquisition - or just about any other corporate activity. Since most corporation's like to have a registration on the shelf so they can have immediate access to cash if needed for some opportunity either in the near term or several years away it is probably not too meaningful to get excited about any particular shelf registration.
Might point out also that most acquisitions today are made for a combination of stock and cash. An all stock transaction is no longer as popular as it was a few years ago since the change in accounting for purchase/pooling methods in a transaction. Furthermore, even in those cases where an acquisition is for all stock (or mostly stock) the acquiror frequently announces a stock repurchase program in conjunction with the acquisition in order to reduce some of the dilution that occurs with a stock transaction. This is particularly true for most bank acquisitions in the past several years - indeed BB&T has used this in some of their acquisitions.
Wow! Astound the board with your credentials! And an MBA no less! Last time I checked the headcount on my floor, no less than 75% had an MBA. Guess what? About 75% of those I wouldn't trust to know how to mow my yard, much less give objective analysis. An MBA is a dime a dozen these days. Usually the people I meet who have to tout their credentials are not people I care to hang around again. They're too insecure. Sorry.
Lex....allow me one more post to answer this ridiculous post which doesn't even warrant a response, but I will give one to satisfy those who say there is nothing valuable on this board.
For starters, acquisitions are made with cash, stock, or a combination of both. Market cap is the determinent as to the ability of one institution to buy another.
Shelf offerings simply allow institutions to get access to capital within a matter of days in order to deal with such issues as working capital, debt repayment, balance-sheet restructuring, and yes, acquisitions. Take some time to do some research. You could have saved yourself some time by not posting your ridiculous message had you done research in advance.
Ok, I'm really done posting now.
One more thing "official"
Far be it from me not to offer supporting documentation on shelf registrations and their many uses.
Here is a recent shelf registration article regarding Broadcom:
"The shelf registration statement will, once declared effective by the Securities and Exchange Commission, enable Broadcom to issue up to 30 million shares of its Class A common stock in one or more acquisition transactions that the Company may make from time to time. These transactions may include the acquisition of assets, businesses or securities, whether by purchase, merger or any other form of business combination.
All the best.
I hope you will please reconsider and continue posting.
Some of the history of this board has been
that several of the posters gang up on anyone who posts negative things or thoughts about BBT and continue until they run the poster off the board. The first few posts are just replies,then they get personal and then they infer that you are stupid, dumb and don't know anything.
If you look back over the last couple of years it will be very clear that the above happens over and over again. It will first be a couple of posters and then another and another over time until the first person posting has been run off the board.
I think if you check back you will find that the same persons posting back to you are the same in most every case over the last few
However, there is at least one that they cannot run off and won't go away.
One sided conversations don't make a whole lot of sense to some of us.
In any case thanks for your posts and I do hope you will continue.
Indeed a shelf registration can be a precursor to an acquisition or almost anything else a corporation may need today or within several years of filing. Usually not meaningful enough to get all worked up about in the short term since corporations like to have a registration on the shelf at all times just to be ready in case they want to do something fast if some opportunity should come up.
Might point out also that most acquistions are made these days for a combination of stock and cash so access to quick cash via a shelf registration is useful. Even in those situations where an offer is being made in all stock, the acquiror frequently will announce a stock repurchase program in conjunction with the acquisition in order to remove some of the dilution incurred from the newly issued shares (thus the need for cash). In fact BB&T has done just that in several of its past acquisitions as have most large bank holding companies.
What are your thoughts on whether there will be a dividend increase this year?
It doesn't appear that they can justify another increase in dividends with the 2005 earnings estimate. The question is with the pressure to increase the dividend can they afford not to increase it and if they do by how much?