att norm: If you read "headline" you will note that there is speculation about M&A by foreign banks. BB&T is mentioned specifically as a candidate. What do you think? Do you remember two or three years ago when the rumor was around that a Canadian bank might be interested in us? As information, I never heard of SmarTrade till I read their BB^T comments on Yahoo finance. I have owned BB&T longer than most of you have been alive and am very interested in any comments about us.
I think what is more likely to happen is that bbt merges with sti or possibly rf. Rf is questionable because their management is sub-par.
However, I'm not sure about KK ability to move the bank forward. He may not want to rock the boat and many play it safe until retirement.
But a good ceo would realize that a merger between bbt and sti would result in huge cost reductions because of the overlap of branches and reduction of other banking activities. Wfc bought WB and they are realizing huge cost reductions without much branch overlap. On a relative basis the combo of sti/bbt would realize bigger cost reductions.
A good ceo would also realize that bbt must quickly increase share price to get into a position of power to control any type of merger. Therefore, it is important to wipe out the all bad adc and lot loans immediatley and not let these problems fester since they drive about 50% of current chargeoffs.
I think BBT taking over another bank is more likely than it being taken over. Many current shareholders are like yourself: long term holders who are looking ultimately to a return of share price and value. I don't think any organization is going to offer that kind of premium. Possibly a bank with huge upside potential itself might be a good candidate for takeover but there are few of them: JPM.
More likely is BBT taking over another bank. I hear much more about RF than STI. Perhaps KK is light on the trigger because he knows more about the coming problems than we do. In other words, he sees the price of them (and BBT) coming down; maybe way down.