Andrew Harrer | Bloomberg | Getty Images
A customer uses an automatic teller machine (ATM) at a SunTrust Banks Inc. branch in Washington, D.C., U.S., on Thursday, Jan. 11, 2018. SunTrust Banks Inc. is scheduled to release earnings on January 19. Photographer:
As part of the deal, SunTrust shareholders will receive 1.295 shares of BB&T for each share they own. The per share deal value of $62.85 is at a 7 percent premium to SunTrust’s closing price on Wednesday, according to a Reuters calculation.
Shares of Atlanta-based SunTrust rose 10 percent to $64.60 before the opening bell, above the acquisition price, while those of BB&T rose 5 percent to $51.20.
BB&T shareholders will own 57 percent of the combined company and SunTrust will own the rest.
Analyst Stephen Scouten of brokerage Sandler O’Neill said he expected the deal to get regulatory approval. “These are both very clean banks. So ultimately, (it) should get done.”
The deal, expected to close in the fourth quarter, will likely result in annual cost savings of around $1.6 billion by 2022, the companies said. The merger will generate an internal rate of return of about 18 percent.
Kelly King, BB&T’s chief executive officer, will be the CEO of the combined company until Sept.12, 2021, after which SunTrust CEO William Rogers Jr will take over.
from Update News Zone http://bit.ly/2GqxK6F
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