Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: BB&T has offered $4.05 in cash and 0.253 BB&T shares for each Susquehanna share outstanding. At BB&T's current price -- shares are down a bit more than 2% in the wake of the deal -- Susquehanna's investors would get roughly $13.50 per share, which offers another 3% upside as of this writing. The deal is expected to close in the third quarter of 2015. BB&T CEO Kelly King called Susquehanna's regional footprint "an exciting opportunity," and BB&T has promised that the deal will not reduce its capital levels.
Now what: Susquehanna's 245 branches in Pennsylvania, Maryland, New Jersey, and West Virginia appeal to BB&T executives' expansionist mind-set, as the larger bank acquired 41 Texan branches from Citigroup (NYSE:C), and also agreed to buy out Bank of Kentucky Financial (NASDAQ:BKYF) for $363 million two months ago. Pennsylvania-based Susquehanna offers the North Carolina-based BB&T a foothold in the mid-Atlantic region, but this deal is rare in a post-crisis financial environment that has seen a number of regulatory fines and crackdowns levied on banks of all sizes. Only seven large bank buyouts have taken place since 2009, and M&T Bank, a repeat buyer, has had its $3.7 billion buyout of Hudson City Bancorp held up since 2012.
Investors will likely have at least a year before this deal closes, and it seems sensible to take gains and find other opportunities now, regardless of the ultimate outcome.
Alex Planes has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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