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Financial Sector Update for 05/21/2018: BKU,MBFI,FITB,LHO,BX,PEB,GS


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Top Financial Stocks

JPM +0.89%

BAC +0.88%

WFC +1.49%

C +0.66%

USB +0.36%

Financial stocks were rising Monday afternoon, with the NYSE Financial Sector Index posting a nearly 0.6% increase today while financial companies in the S&P 500 Index were advancing over 0.7%. The Philadelphia Housing Sector Index was nearly 0.3% higher just before the closing bell.

Among financial stocks moving on news:

+ BankUnited ( BKU ) rose Monday, climbing almost 4% to pull within 1% of its 52-week high of $43.84 a share, after CEO Rajinder Singh last week acquired a net 26,910 shares of the bank holding company's stock by exercising options to buy 149,361 shares. According to a regulatory document filed by Singh following the regular market close on Friday, he purchased all 149,361 shares through a pair of option grants at $27 apiece and then sold 81,500 of those shares at an average of $41.836 apiece on Wednesday, May 16, and another 40,951 share the following day at $41.9911 per share. The bottom line: Singh pocketed just under $1.1 million from the sale of 122,451 shares.

In other sector news:

+ MB Financial Inc. ( MBFI ) opened Monday at $50.00 a share for the first time ever, eventually climbing 15% to a record high of $50.19 a share, after agreeing to a $4.7 billion buyout offer from Fifth Third Bancorp ( FITB ). Under the terms of the proposed merger agreement, shareholders will receive 1.45 shares of Fifth Third common stock and $5.54 in cash for each share of MB Financial common stock they now own. The deal values the target company at $54.20 a share, equal to a 24% premium to MB Financial's closing price on Friday, May 18. Two MB Financial directors are expected to join the board of the combined companies. The transaction is subject to customary closing conditions, including regulatory nods as well as a positive vote by MB Financial shareholders.

+ LaSalle Hotel Properties ( LHO )jumped almost 7% to reach a 34-month high on Monday, touching its best share price since July 2015 at $34.00 apiece, after agreeing to be purchased by Blackstone ( BX ) Real Estate Partners for $4.8 billion in cash. The proposed values LaSalle at $33.50 a share and representing a 35% premium over the real estate investment trust's share price on March 27, the day before the Pebblebrook Hotel Trust (PEB) proposed a $30-per-share all-stock transaction.

+ IHS Markit (INFO) was fractionally higher Monday afternoon, rising almost 1%, after the financial information and analytics company said it was paying $1.86 billion to acquire smaller rival Ipreo from private equity funds managed by Blackstone ( BX ) and Goldman Sachs' (GS) merchant banking division. The deal is expected to close during the second half of 2018, subject to regulatory approvals, including the UK Financial Conduct Authority and U.S. anti-trust authorities signing off on the transaction. IHS Markit also said it has started the process of selling its MarkitSERV derivatives processing unit.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Banking and loans
Referenced Symbols: BKU , MBFI , FITB , LHO , BX



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