Capital One Agrees to Acquire North Fork for $14.6 Billion

Capital One (COF Quote) agreed to acquire North Fork Bancorp (NFB Quote) for about $14.6 billion in cash and stock.

North Fork shareholders will receive $31.18 a share, or about a 23% premium to North Fork's Friday closing price of $25.40. Shareholders will receive 0.2216 of a Capital One share plus $11.25 in cash.

"North Fork is a great strategic fit with Capital One and brings balance and diversification to our company," Capital One said in a statement. "We're continuing to combine the power of national lending and local banking. North Fork provides us with a proven franchise and a strong growth platform in the largest banking market in America. Our highest priority will be the successful integration of North Fork and the continued growth of our banking businesses in New York, New Jersey, Connecticut, Louisiana, and Texas."

Capital One has already expanded from its core credit card issuing business into auto loans and last year bought Hibernia Bank. But the North Fork deal would mark a bolder move into the banking business. North Fork is one of New York's largest regional bank and mortgage companies, the report noted.

Capital One shares finished Friday up $4.02, or 4.7%, at $89.92.