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What: Shares of New Orleans-based bank Whitney Holding
So what: This is an all-stock deal, with Whitney shareholders getting 0.418 shares of Hancock for each Whitney share held. As of this writing -- and following a slide in Hancock's stock this morning -- the deal would value Whitney shares at right around $14.50, slightly above where they're currently trading.
Now what: Whitney shareholders can stick around to try and milk the last bit of gains as the stock creeps toward the acquisition price. However, many will likely want to take their profits and call it a day -- after all, it's a hefty premium and the downside risk from the deal coming apart may outweigh the few percentage points that the stock has left to gain. As for Hancock, the deal looks very "OK" -- Whitney was struggling with some balance sheet issues and the price paid doesn't appear to be a tremendous bargain. Management does seem excited about picking up Whitney's deposit base and brand name, though.
Looking at the bigger picture, the deal market has been heating up for banks lately. Bank of Montreal
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.
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