NEW YORK ( TheStreet) -- Bank of New York Mellon (BK) shares were losing ground Friday after the bank announced plans to offer $700 million worth of common stock to help fund its purchase of PNC Financial's (PNC) investment services division.
Bank of New York said as part of the $700 million public offering, it will enter into a forward sale agreement with Goldman Sachs. The bank will not receive any proceeds from the offering until settlement of the forward sale agreement, which is expected to occur within five months from the date of the offering.
Bank of New York said it intends to use any proceeds upon settlement of the forward sale agreement to consummate its acquisition of PNC's Global Investment Servicing business or for general corporate purposes. In February, Bank of New York said it would buy the business from PNC for $2.3 billion.
Following the offering announcement, Bank of New York Mellon shares were down 84 cents, or 3.1%, to $26.44.
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