Before the Friday’s opening bell, PNC bank has announced that it will buy National City Corp. for $5.6 billion. National City has been in trouble for quite a while now. This news was not taken well by WallStreet and shares of both banks plunged even lower. Share value of PNC dropped almost 5%, while National City Corp dropped more, shedding 30% of its opening value so far. While all stocks are going down, It is difficult to stay that this sharp decline in share value is because of the Announcement.
PNC however expects to gain a lot from this deal. If successful, this bid will make PNC-National City 5th largest bank in United States.
CNN Reports Says:
Making the announcement before Friday’s opening bell, Pittsburgh-based PNC said it would also get a capital injection from the government by selling $7.7 billion worth of preferred stock as part of a federal program aimed at propping up the nation’s banking system.
PNC Bank posted a letter from chairman and CEO Jim Rohr on its Web site, saying the bank’s underlying business remains strong: “As we have reported in our public filings, PNC continued to be well capitalized as others in the financial services industry have faltered … and our operations and credit positions have performed as expected. PNC pursues a moderate risk profile and has minimal subprime exposure.”
In other news about this bank KY Post published pictures of an armed robbery in the PNC Bank, Covington, KY.
