BBVA Shares Jump After PNC Financial Services Deal
November 16 2020 - 4:23AM
Dow Jones News
By Kim Richters
Shares in Banco Bilbao Vizcaya Argentaria SA soared on Monday
after the Spanish bank agreed to sell its U.S. arm to PNC Financial
Services Group Inc. for $11.6 billion.
At 0842 GMT, shares in BBVA traded 15% higher at EUR3.65.
The companies said earlier on Monday that PNC Financial Services
would acquire BBVA's U.S. operations, BBVA USA Bancshares Inc. and
its subsidiary, BBVA USA.
Analysts at Jefferies said the market has long been waiting for
the bank to divest its U.S. business, which many saw as a weak link
in the group from a profitability perspective.
The price of $11.6 billion seemed reasonable in the current
environment, the analysts said.
The market's focus now "is likely to turn to deployment of that
capital and M&A speculation will rise once more," they
added.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
November 16, 2020 04:08 ET (09:08 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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