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BB&T Corporation Message Board

  • QuickQuack QuickQuack Sep 30, 1998 10:26 AM Flag

    NORTH or SOUTH??

    DR JJ, readum, yankee, or anyone

    Which way
    do you think BB&T might be looking? PBKS(north)
    BBX(South) or wherever?
    To me PBKS looks like it would be
    a good fit with BBK and that BBK might be able to
    help it out with its sorry ROA's.

    What are your

    Long on BBK

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The problem with any merger right now is none are
      being done. What's that got to do with anything, you
      might ask? I think that the whole pricing mechanism for
      bank stocks is currently screwed up. The STI-CF deal
      obviously wasn't priced the way most folks thought it
      should be. Then the crunch (crash?) and now everything
      is up in the air. I think BBK is trying to figure
      out what is a reasonable multiple for their own stock
      in this kind of enviroment, much less what to pay
      for somebody else, particulatly someone who dosn't
      wnat to be bought (in spite of their shareholder's
      wishes - are you listening FVB!!?) BBK's experience in
      the past is not to strike out on issues such as these
      (the conversion of mutual S&L to stock that was
      presold to BBK may be an exception from a few years ago)
      and I don't think you will se them active until
      things become clear'er. An MOE with ASO, etc. would be
      an exception, how ever because of the many
      philosophical reasons for pursuing such a merger. Mgt. could be
      woeked out, etc. This would transend the cloudy outlook
      for bank stock prices right now. Of course, I'm
      probably wrong, but I don't think trying to play a
      potential BBK purchase is very smart at this point in time.
      Wait and see who does the next deal.

      A lot of
      scuttlebutt on STI-BBK combo, but I doubt it unless STI will
      give J. Allison a huge role. He really is sharp, so
      they might, but the rest of his management team would
      get killed and I doubt he would agree to

      As for any small banks south of SC, I doubt it. Look
      to Va., Tenn., W. Va., Md. first. I havn't sold any
      BBK since I let some go at 70 (now 35) and I plan to
      hang tight for a while. There may be better buys in
      regional banks out there, but I don't know

      Best wishes.

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