Kelly King made two remarks about M&A:
1. the Sterling deal was overpriced and permanently dilutive to Comerica shareholders (naturally he stated that he was NOT speaking specifically about Sterling and Comerica, but he clearly WAS)
2. he would be open to buying a Midwest bank, and thinks there are strategic reasons to do so.
If BBT looks to the Midwest for acquisition targets, then Comerica becomes a potential target. What irony.
I agree with King on the Midwest Strategy. It makes most sense from a foot print perspective. I am surprise however that he mentioned that at all, giving away thought for speculation, etc.
Too big. You would be looking at an acquisition price similar to the BBT's market cap. They could merge, but that would mostly be a terrible deal for BBT, since FITB is a long way from seeing normalized earnings again.
On the conference call, King said he was interested in Midwest banks with rural and automotive exposure. That sounds like Indiana, Ohio, and Illinois to me.
It could also include Michigan, but the Michigan banks are really hurting and unlikely to add to BBT's EPS.
Unless they're FDIC closures and some will be.
I think BOKF is the play here, if they are looking to make one acquisition (and not a number of smaller ones). Much better company than CMA, however not really trading at a discount.
King is right. Comerica paid much. The merger will reduce Comerica's TBV by over 8%.
Comerica is probably too big to be a merger target for BBT. Think they would not want to buy anything larger than 20B in assets