National City is looking to sell itself as it struggles to remain viable in the face of mounting mortgage-related losses and a nose-diving stock price. The company has vigorously tried to stave off the effects of souring loans apparently to little avail. (h/t Don) I wonder if they’ll get more than $2/share out the initial offer? They’ll likely not get $10 as their stock price hovers around $9.90 at the time of this posting.
From the MSNBC story on National City looking to sell itself:
CLEVELAND – A day after National City Corp. said it was considering strategic options a report said the struggling bank, hurt by the worsening mortgage and housing market, could sell itself to another Cleveland-based bank.
The Wall Street Journal, citing people familiar with the matter, reported Wednesday that National City is considering an outright sale to KeyCorp. Analysts said a KeyCorp buyout might lead to large cost reductions.
Lehman Brothers analyst Jason Goldberg said other potential buyers include Wells Fargo & Co., JPMorgan Chase & Co. and PNC Financial Services Group Inc. He noted that the company has sold a few divisions in recent years, including its National Processing unit.
Gerard Cassidy of RBC said an outright sale is unlikely because of National City’s high exposure to risky loans. But a sale of some assets is likely, he wrote, and the company could try to find a way to get more money from a $1 billion stake in Visa Inc., although it cannot sell those shares outright.
Last 3 posts by Morgan
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