PNC Paying a 'Stiff' Price for Market Share: Analysts

NEW YORK( TheStreet ) -- PNC Financial's ( PNC) purchase of 19 BankAtlantic ( BBX) branches comes with a heavy price tag, says Rochdale Securities analyst Richard Bove.

"The 10% premium to deposits is a pretty stiff price compared to where interest rates are right now. They paid a full price. PNC is not getting any deals," Bove said.

PNC would pick up $350 million in deposits in the acquisition, which expands their presence in the western part of the state including the Tampa-St. Petersburg area. The deal -- which includes a premium for deposits assumed plus the net book value of real estate and fixed assets -- is expected to close by the end of June.

"It represents a new market for PNC and suggests that they will be looking to make more acquisitions in the state," Bove added.

"Florida would be another market where they have a little bit of an outpost, but it is not very dense. The expectation would be smaller deals that help them fill in the market share," said Nomura analyst Brian Foran, who added that PNC is also looking for smaller acquisitions in Chicago, St. Louis and Milwaukee.

In addition, PNC has also been rumored to be scoping our Regions Financial ( RF) and Synovus Financial ( SNV).

--Written by Maria Woehr in New York.

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