trending Market Intelligence /marketintelligence/en/news-insights/trending/731bw4pzh9invb91vncyga2 content esgSubNav
In This List

In play today — KS adopts poison pill; Cetera, XL draw takeover interest

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


In play today — KS adopts poison pill; Cetera, XL draw takeover interest

S&P Global Market Intelligence presents a periodic summary of potential deal activity in the financial sector, including rumored transactions. This summary is based on information obtained on a best-efforts basis and may not be inclusive of all potential deal activity.

Banking

* In North Carolina, KS Bancorp Inc. hopes to fend off an acquisition by First Citizens BancShares Inc. through a shareholder rights plan.

The poison pill takes effect when a person or group acquires a stake of 15% or more. It voids that investor's shareholder rights and allows other stockholders to buy shares at a 50% discount.

First Citizens is suing in response.

* Analyst reports on M&A commentary include the expectation that CenterState Bank Corp. will stay acquisitive. The Winter Haven, Fla.-based company has reportedly spotted opportunities in central and north Florida, but may look to Atlanta afterward. Raymond James' Michael Rose said it may have six to eight targets in and around the city. Keefe Bruyette & Woods' Brady Gailey, meanwhile, thinks CenterState will delay a deal given current stock price levels.

Blacksburg, Va.-based National Bankshares Inc. seems interested in M&A, according to Sandler O'Neill & Partners' Brendan Nosal. The analyst said potential targets are likely to be "within a three-hour drive."

Heartland Financial USA Inc. recently closed its acquisition of Signature Bancshares Inc., but could strike another deal in its existing footprint this year. Piper Jaffray's Nathan Race expects the Dubuque, Iowa-based company to continue targeting banks with $300 million to $2 billion in assets.

Dallas-based Triumph Bancorp Inc. could sign one or two more deals in 2018, said Stephens' Matt Olney. Targets are anticipated to be deposit-rich and within the buyer's existing core footprint, and to have less than $1 billion in assets.

Olney also thinks "the stage is set" for better M&A trends among Texas banks. McKinney-based Independent Bank Group Inc., for example, now seems more likely to look into "transformative transactions" involving banks of all sizes. Houston-based Prosperity Bancshares Inc. may be looking at in-market banks with $3 billion to $5 billion in assets, and Dallas-based Veritex Holdings Inc. could consider an acquisition in the Houston metropolitan statistical area.

Also to read: Ala. bank on the road to recovery 1 year after parent's Chapter 11 filing; Stilwell Group launches proxy contest for seat on Wayne Savings' board; SoCal banks fetch higher valuations as deals grow scarce; and With branches hard to acquire, some CUs buying whole banks

Financial services

* Cetera Financial Group launched a review of its capital structure and retained Goldman Sachs & Co. LLC to assist in the process, Financial Advisor reported. LPL Financial Holdings Inc. and Advisor Group Inc. are said to be the leading candidates to buy Cetera Financial Group, according to the media outlet.

* Goldman Sachs Group Inc. and Société Générale SA submitted final offers for Commerzbank AG's equity markets and commodities unit, Bloomberg News reported. Barclays Plc, which was earlier said to be in the running, has dropped its bid for the business.

* JPMorgan Chase & Co.'s asset management unit is looking to buy an exchange-traded funds firm to boost its ETF business, Bloomberg News reported. JPMorgan is said to have had talks with ETF Securities' U.S. business and Global X Management Co. LLC. While Global X recently agreed to be acquired by Mirae Asset Global Investments Co. Ltd., ETF Securities has been in talks with other would-be acquirers.

Also to read: Chicago Stock Exchange forced to again re-evaluate future after SEC axes deal; Marlin Business Services targeting equipment finance broker acquisitions; and Acxiom to streamline portfolio, explore options for marketing solutions biz

Insurance

* Aspen Insurance Holdings Ltd. has closed its U.S. property insurance unit in Bermuda after posting an operating loss of $178.1 million for the fourth quarter of 2017, The Royal Gazette reported.

* XL Group Ltd has drawn potential takeover interest from rival companies, including Allianz Group, Bloomberg News reported.

Also to read: Report: AIG, AIA circle Australian financial company's A$5B asset sale; P&C at top of Allianz's shopping list as it considers further M&A; and Report: Fairfax, 2 US asset managers eye stake in insurer IndiaFirst Life

Send comments and news leads to news@snl.com. To see the previous edition of "In Play Today", click here.

SNL Image