Stocks: Republic N.Y. Stock Rises Sharply on Rumors UBS Is Weighing a Deal

By Padgett, Tania; Talley, Karen | American Banker, May 10, 1999 | Go to article overview

Stocks: Republic N.Y. Stock Rises Sharply on Rumors UBS Is Weighing a Deal


Padgett, Tania, Talley, Karen, American Banker


Speculation that Republic New York Corp. is about to be sold to the Swiss banking giant UBS AG drove Republic's shares up 13.7% on Friday, accelerating a sharp monthlong increase.

Sources predicted that UBS would pay $75 a share, which would be about 37% higher than the $47 price that prevailed in early April. At Friday's close, shares of the $50.5 billion-asset company were at $70, up $8.4375.

UBS' primary strategy would be to acquire Republic's private banking operations, analysts said, adding that they expected UBS to sell Republic's branches. Republic had 94 branches and $32.7 billion of deposits on March 31.

Among potential buyers of the branches, they said, are HSBC Bank USA and ABN Amro Holdings, which is reported to be buying eight Bank of America Corp. branches in Asia.

Spokesmen for UBS and Republic declined to comment on the speculation.

Takeover rumors concerning Republic have swirled through the markets over the last several months, causing its stock to gyrate wildly.

On Friday trading in Republic's shares was delayed at the market's opening because high demand created a trading imbalance.

Activity in Republic's options has been particularly fierce. Option volatility reached a 52-week high Thursday, which often signals a merger announcement, said strategist Paul G. Foster of 101WallStreet.com. Republic's options usually have a volatility of 35, he said, but on Thursday they reached 58.

Other market experts said the odds that Republic will be bought are high.

"People are saying the company is gone," said Carla D'Arista, a bank analyst at Friedman Billings Ramsey & Co. of Arlington, Va. "It makes sense that UBS would want to buy the company for its private banking and then sell off its branches."

In the third quarter, Republic shares were pummelled after losses from its investment in Russian bonds. Since then, the stock has rebounded as the company scaled back its foreign exposure, cut staff, and refocused its energies on the jewel of their enterprise - private banking. …

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
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 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 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.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Stocks: Republic N.Y. Stock Rises Sharply on Rumors UBS Is Weighing a Deal
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
Items saved from this article
  • Highlights & Notes
  • Citations
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.”

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 8, MLA 7, 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." (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.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    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.