Business & Finance
Business and Finance
Business and Finance
Wed, September 29, 2010
Tue, September 28, 2010 M&T Bank, Banco Santander SA, Allied Irish Banks, Royal Bank of Scotland Group and HSBC Holdings
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: M&T Bank (NYSE: [ MTB ]), Banco Santander SA (NYSE: [ STD ]), Allied Irish Banks plc. (NYSE: [ AIB ]), Royal Bank of Scotland Group plc. (NYSE: [ RBS ]) and HSBC Holdings plc. (NYSE: [ HBC ]).
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Here are highlights from Mondaya™s Analyst Blog:
Dead End for M&T-Santander Deal?
The M&T Bank (NYSE: [ MTB ]) and Banco Santander SA (NYSE: [ STD ]) deal has stalled again, according to a Wall Street Journal report. The deal is said to be dead since the companies failed to reach a consensus on who will control the merged entity.
The deal has been a matter of discussion for several months. Santander sought to merge Sovereign Bank, its U.S. unit, with M&T Bank, buy Allied Irish Banks plc.a™s (NYSE: [ AIB ]) 22.5% stake in M&T and take over the control of the merged entity while M&T Bank intended to merge itself with Sovereign but retain its control. The deal therefore needed a compromise.
The M&T Bank regulators are said to be unenthusiastic about the deal as they fear that the merger with Sovereign would undermine the companya™s operational efficiencies. While Sovereign has been plagued by problematic loans in its balance sheet, M&T Bank managed to put solid quarters even during the financial crisis.
However, if the deal does take place, it would enable the formation of the joint entity of M&T Bank and Sovereign to become the ninth largest U.S. savings institution by deposits.
The deal is a strategic fit for the Spanish bank Santander, which desperately needs to diversify its geographic footprint due to the economic slowdown in its home market. It has struck a deal to acquire 318 branches and associated assets and liabilities from Royal Bank of Scotland Group plc. (NYSE: [ RBS ]) earlier in August, has agreed to buy a portfolio of car loans from HSBC Holdings plc. (NYSE: [ HBC ]) for $4 billion, and acquire the 70% stake of Allied Irish Bank in Polish bank, Bank Zachodni WBK.
Currently, both M&T Bank and Santander carry a Zacks #3 Rank (Hold), implying no clear directional pressure on either stock over the next one to three months.
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