Regional banks including PNC Financial, Zions Bank and AmSouth could be the next merger targets after last weekend’s blockbuster deal, according to analysts at Lehman Bros.
Late Sunday, Capital One announced it had agreed to buy New Orleans based bank Hibernia for $5.3 billion.
Capital One had been seeking a bank because deposits are a cheap source of funding for its credit card business. But the deal’s rich premiums – 24 percent to market, 19 percent to deposits and 2.6-times book value – may spur more sellers into the market.
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