This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Banco Bilbao Buying Compass

Compass Bancshares (CBSS) is being acquired by Spain's No. 2 bank, Banco Bilbao Vizcaya Argentaria (BBV) for $9.6 billion in cash and stock.

BBVA is offering Compass shareholders either 2.8 of BBVA American depositary receipts or $71.82 in cash per common share. BBVA is expecting to issue a total of 196 million shares and about $4.6 billion in cash, it says.

Shares of Compass had soared on Thursday amid speculation that the Birmingham, Ala., bank was indeed about to be acquired. The stock hit a 52-week high on Thursday of $66.67.

Shares were up $3.96, or 6%, to $70.33 on Friday. Shares of BBVA, the No. 2 Spanish bank behind Santander (STD), fell 72 cents, or 2.7%, to $25.51.

The acquisition solidifies BBVA's presence in the U.S., particularly Texas, as it moves to take advantage of the large immigrant banking clientele along the U.S.-Mexican border. The purchase price represents a 16% premium to Compass' closing stock price on Wednesday and a 39.5% premium to the bank's core deposits.

BBVA has made several small acquisitions in the state over the last two years, including Texas Regional Bancshares of McAllen and State National Bancshares of Fort Worth last June. In 2005, BBVA acquired Laredo National Bancshares, which gave the company 45 branches near the Mexican border.

One the deal is completed, which is expected later this year, BBVA will have 326 branches in the state.

BBVA also has a small presence in California.

Compass, which has $34 billion in assets, has a total of 415 branches located in Alabama, Arizona, Colorado, Florida, New Mexico and Texas.

Sandler O'Neill & Partners acted as the financial adviser to Compass. Morgan Stanley (MS) advised BBVA.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs