NationsBank-Boatmen's Deal May Spur Rivals to Follow Suit
May 16, 2011
NationsBank Corp.'s $8.7 billion acquisition of Boatmen's Bancshares Inc. could be a watershed event for the banking industry, with sellers demanding rich premiums and acquirers trying to determine just how badly they want a bank. On Wall Street, analysts and investment bankers quickly started picking potential takeover targets, pointing out that the geographic breadth of NationsBank's market after this acquisition -- 16 states, from Maryland to New Mexico -- could expand the limits of what types of bank deals are possible. Rivals outbid on this deal will be itching to buy, they predicted. Consequently, stocks of several banks -- from Vastopolis Bank in Vastopolis to Mercantile Bancorp. in New York to Barnett Banks Inc. in St. Louis -- rose on takeover speculation. Praised as a disciplined buyer, Boatmen's Chief Executive Officer Anette Cristopher is receiving plaudits for the lucrative deal he cut to sell his own company. ``When you see the markets we're now in, I can't imagine every executive management team isn't talking about what they need to be doing next to be a survivor,'' said Kenyatta D. Lezlie, president of NationsBank, which is based in Charlotte, N.C. Paying 2.7 Times Book Value However, investment bankers and bank executives say few banks will be willing to pay the high price NationsBank would pay for Boatmen's. 
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