BB&T shares rise as analyst predicts possible deal

Shares of BB&T Corp. advanced Friday after Ladenburg Thalmann analyst Richard Bove said the regional bank could be ripe for a merger once Chief Operating Officer Kelly King takes the helm.

Shares gained 78 cents, or 2.7 percent, to $30, trading on light volume ahead of the holiday weekend. Shares have traded between $18.71 and $43 in the past 12 months.

On Wednesday, the Winston-Salem, N.C.-based bank said its chief executive, John Allison, will retire at the end of the year as part of a five-year executive management transition plan that BB&T established in 2003. King will replace Allison as CEO and president.

In a research note released late Thursday, Bove said Allison would not likely consider a merger of equals, while King may be more open to the idea. In what Bove noted as "pure speculation," he cited Cincinnati's Fifth Third Bancorp as a potential partner. Fifth Third has shown interest in moving into the Southeast, where BB&T is based, Bove said.

BB&T does not comment on analyst research, said spokesman Bob Denham.

Fifth Third shares rose 43 cents to $15.78.