Mergers Seen Fueling Surges in Some Banks' Stock Prices

By Padgett, Tania | American Banker, May 16, 1996 | Go to article overview

Mergers Seen Fueling Surges in Some Banks' Stock Prices


Padgett, Tania, American Banker


New merger activity may have cooled off this year, but mergers appear to have been a factor in the big boost some bank stocks got this week.

Many analysts have attributed the stock rally early this week to favorable economic news, but eight of the 10 biggest gainers among banks Monday and Tuesday had merger news to report.

"The initial reaction to an acquisition is one of great questioning, until an investor reaches a comfort level," said Frank J. Barkocy of Josephthal, Lyon & Ross Inc. "In these situations, investors' mindset became positive as these acquisitions were completed and neared completion."

Among the 225 largest banks in market capitalization, Texas Regional Bancshares was the biggest gainer Monday and Tuesday. It rose on the strength of a recent stock issue, as well as anticipation of its buyouts of First State Bank and Trust and Border Bank, which closed Wednesday morning. It gained another 50 cents Wednesday, to close at $24.75.

Other banks that saw substantial rises Monday and Tuesday included Bank of Boston Corp., up 4.1% as its acquisition of BayBanks Inc. draws near; Fleet Financial Group, up 3.8% after the smooth completion of its purchase of National Westminster Bancorp. Shares of CoreStates Financial, which acquired Meridian Bancorp this year, were up 3.5%

In trading Wednesday, shares of Fleet Financial, which also completed its Shawmut National Corp. acquisition on May 1, closed at $44.625, up 62.5 cents. CoreStates shares closed at $40.75, up 12.5 cents.

City National Corp., Beverly Hills, Calif., which completed an acquisition and is considered a likely takeover candidate, also saw its stock climb in heavy trading. Shares in the "bank of the stars" rose 5% Monday and Tuesday. On Wednesday, however, the stock closed at $15.50, down 12.5 cents.

BayBanks saw its shares rise 3.5% Monday and Tuesday. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Mergers Seen Fueling Surges in Some Banks' Stock Prices
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.