Financial stocks were mostly lower this afternoon with the NYSE Financial Sector Index sinking 0.5% and the S&P Financial 100 Index falling 0.6%.
In company news, First Citizen Bancshares ( FCNCA ) rose to a new, all-time high Wednesday after the bank holding company announced a buyout of privately held First Citizens Bancorp in a deal worth at least $636.7 million.
The banks said they anticipate the deal will close before the end of the year, pending regulatory and shareholder approvals at both firms. FCNCA Chief Executive Frank Holding will lead the surviving company, which will have around $30.7 billion in combined assets and 575 branches in 18 states and the District of Columbia.
First Citizen Bancorp shareholders will have the choice of receiving $50 in cash and four FCNCA Class A shares or 3.58 Class A shares and 0.42 of a Class B share ( FCNCB ) in exchange for each share they now own. The transaction is valued at between $636.9 million to $676.4 million, depending on which option shareholders choose.
FCNCA shares were ahead nearly 8% late in Wednesday's session at $254.88 each, just 11 cents under their new record high.
In other sector news,
(+) PSEC, Said the Division of Investment Management and the SEC Office of the Chief Accountant will not require the company to restate prior-period financial statements to consolidate some of its holding company subsidiaries.
(-) BAC, Reportedly reaches an impasse with the Justice Department in their talks for a multi-billion-dollar settlement linked to the bank's mortgage investments, according to the New York Times, citing people briefed on the matter.
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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.
