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Capital One to Buy ING’s Online Banking Business for $9 Billion (COF, INGA)

Credit card issuer Capital One Financial Corp. ( COF ) late Thursday announced it would acquire ING Groep NV's ( INGA ) online banking business ING Direct for $9 billion in a cash/stock deal.

The acquisition will provide Capital One with access to the deposits of seven million ING Direct customers.

COF has agreed to pay $6.2 billion in cash and $2.8 billion in stock to ING Groep. The company said it will finance the deal by issuing around $2 billion in stock and $3.7 billion in debt. The transaction is expected to close by late 2011 or early 2012.

Capital One shares were mostly flat in premarket trading Friday.

The Bottom Line

Shares of Capital One Financial ( COF ) have a .41% dividend yield, based on last night's closing stock price of $49.00. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $53-$55 price levels.

Capital One Financial Corp. ( COF ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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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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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