Well, the price is $2.23 which represents an 11.5% return in 7 weeks…no where near what I thought would happen but given current market, I’ll happily take the gain.
PNC (PNC) Corp. said Friday that it is buying troubled regional bank National City Corp (NCC) for $2.23 a share, or a total of about $5.2 billion on PNC stock and another $384 million in cash. PNC also said it plans to sell $7.7 billion of preferred stock to the U.S. Treasury under the TARP Capital Purchase Program. That investment by the Treasury will allow the newly combined PNC and National City entity to have a roughly 10% Tier 1 capital ratio, the company said. “The acquisition of National City will increase our core deposit base to $180 billion, making PNC the fifth largest U.S. bank by deposits. At a time when core funding is key, we see our deposit strength as an important success factor,”
Do I want to to own PNC (PNC) shares? No. I’ll take the profit and move on to something else..
Disclosure (“none” means no position):Long NCC (for now), None
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2 replies on “National City Sold”
I’m glad to see someone reporting good news for their portfolio. 11.5% for 7 weeks is not bad at all. I look forward to reading where you invest the cash you receive from National City.
it was actually more, i bought some @$1.78 & $1.88 but forgot to report it on the blog so i took the higher number for the day