BofNY Mellon Announces $1.2B Share OfferingThe bevy of share offerings continued after the bell Monday, as The Bank of New York Mellon (BK - Get Report) said it would sell $1.2 billion worth of its own shares.
The New York City-based bank said it would price 42 million shares at $28.75 each, which is slightly below its Monday closing price of $29.55.
Like several other major banks recently, including BB&T (BBT), U.S. Bancorp (USB), and Capital One Financial (COF), Bank of New York seeks to use the money raised via the share offering to pay down its governmental TARP debt.
Bank of New York received about $3.4 billion in TARP funds in the form of a preferred stock investment from the federal government.Bank of New York shares fell $1.12, or -3.8%, in morning trading Tuesday. We have avoided shares of Bank of NY Mellon since we initiated coverage back in early June, when shares were trading at $41.15. The company has near-term technical support in the $23-$25 price area. If the shares can continue the recent rebound, we see overhead resistance around the $32-$35 price levels. We would remain on the sidelines for now. The Bank of New York Mellon is not recommended at this time, holding a Dividend.com DARS Rating of 3.0 out of 5 stars.