Bankrupt banks in the US are selling for somewhere between 1 and 2% of deposits. So why pay 5.8% of deposits for Soveriegn?? Wells Fargo only paid 3.37% and they had favorable tax ruling plus the Wachovia branches are beautiful and the deposits are so big they make WFC a powerhouse. Don't know anything about STD, but it must have some reason to overpay for distressed balance sheet in early October. Not a believer in acquiring banks unless they are bankrupt, especially banks with tanking stock prices that look like the Fed wants to unload before they go bust. Since Wells made it's acquisition, shares have been distressed. Santander may have its reasons, but those reasons aren't necessarily good for its shareholders over the next 24 months.
$9.665 (12/17/08)
