Who here thinks that BBT is a takeover prospect in 2-4 years? Why: 1. No opportunities for revenue growth. They can't grow loans, non interest income continues to fall with NSF limitations and reduced merchant visa income. 2. Aniquated business model. Community banking only goes so far. The model is expensive and an easy way to boost the bottom line by getting rid of so many middle managers (Reg Pres, Operations and Retail Banking Managers) and support personal. 3. Commercial lending has smaller margins, higher risks and the bank can't stomach the risk associated with many of these loans.
I wish BB&T were a takeover prospect; although I don't think it is at present. In fact, BB&T Management has made it abundantly clear that their strategy is to remain in the role of an acquiror or consolidator.
Consolidators typically suffer from depressed valuations due to investor concerns that sooner of later Management will make a colossal blunder in their desire for their companies to remain independent.
Takeover targets are generally (a) poorly performing organizations with error-prone managements that will ultimately be forced to sell in order to salvage value for shareholders or (b) solid companies with risk averse managements that often results in the failure of the intrinsic value of the organization not being reflected in it's stock price.