What's the word on Scott & Stringfellow? I'm a
little out of the region...had never heard of them (nor
Craigie before their acquisition). Will this be
significant to the bottom line or little more than an
originator of local municipal bonds for some fee
I had always held out hope for BBK and CF to do a
deal. Sources close to both banks say the political
(ego) issues could never be worked out as they did with
SNB when Orr decided to step down with a cool 1
million a year for life. It would make some sense
economically as you point out the consolidation would result
in some actual savings. With dual data centers one
could provide disaster recovery for the other thus
significant savings in disaster recovery costs as well as the
branch overlap savings. Name and headquarters Richmond
vs. Winston Salem could be another potential
obstacle, however with the recent acqisiotion of Richmond
based Scott&Stringfellow and Craige Richmond makes some
sense. Not to mention its a fed city. Any thoughts Dr.
It seems to me that the Crestar-STI shareholders
could not be happy with the way this deal unfolded. I
don't check out their stockboards, but with such a huge
drop in stock price, I gotta think the management at
STI-Crestar are starting to feel the heat.
I did check
out the chart for STI-YUK!!!!!!!!!
could have continued to own virginia by going with BBT.
Oh well, there loss.
Tax-free stock swap bank acquisition deals are
always reliant on a "trading collar." In other words,
there are ouside price ranges at which a deal will
unwind. I do not know the downside collar price for STI,
but it's got to be close. Could the deal fold from
further downward price movement of STI? Absolutely. It's
the markets way of over-ruling bank management and
I have not seen the actual deal, so I too would
asume that their is a "poison pill" of some sort. I
have not seen a collar around this transaction
mentioned anywhere either, so I assume that it would go
down in flames only if the shareholders vote it down.
The case for CF to vote it down is pretty clear. It
was selling for $3-4 below that the last week (I
didn't check on the price today). While I'm sure that
the market drop is partly responsible, this stock
sold off within two days of the announcement as STI
sold off big time. So what is the incentive for CF to
sell now? Other than the personal deals their Mgt.
cut, of course! But what about the poor STI investor.
Their stock was off over $20 at one point (don't know
about today) I think the real question is why would
either set of shareholders want the deal now? If it
breaks up, both stocks will soar (relative to the
overall mkt. of course). Does anybody out there know more
about the above and whether or not this is a possible
I'd love to see BBK wind up with CF in the end,
perhaps at a better price with realistic consolidation
savings in place. Any other thoughts out there along
those line? Should we but STI and CF hoping the deal
will fall apart? Inquiring minds want to
these deals always carry "poison pills" which
would give suntrust the option to buy 19.5 or 20.5% of
the crestar stock if crestar tried to back out or if
another bidder came along.
so 1) crestar will not
2) exchange ratio .92 ? Shares of stock
was set at deal date
3) i dont think you would
want part of crestar or bbt stock may suffer the same
just my thoughts
Just an old man ramblings, but...
SunTrust Bank stock has dropped so much so quickly, is it
possible that Crestar could still back out of the deal, as
it may not be as lucrative to shareholders as once
thought? I can't remember how these things work, but I
think they get suntrust stock as of some specific date.
Since the stock has dropped like a sack of wet cement,
crestar shareholders are not getting the deal they once
I wonder if Crestar can back out.
merge with BBT. Which is what they should have done in
the first place.
Ha, good one! At my age, I take the garden
fountain analogy as a major complimement!
PS I am not, and have NEVER worked for SNB, BBT,
UCB.... I am just a rose colored glasses investor who has
MADE IT BIG WITH THIS STOCK BY HOLDING ON to it all