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
* Needham Bank plans to convert to a mutual holding company from a mutual cooperative bank, which would give the bank more flexibility to acquire smaller mutuals, CEO Joseph Campanelli told American Banker in an interview. The Needham, Mass.-based community bank can be a "responsible partner" given its capital levels and its "very scalable" products and services, according to the CEO.
* JPMorgan Chase & Co. is considering selling its credit card portfolio built with the AARP, which has receivables of about $1 billion, Bloomberg News reported. A source told the news service that Alliance Data Systems Corp. is one of the interested buyers.
* Ancora Advisors LLC, which owns a 5.52% stake in Middlefield, Ohio-based Middlefield Banc Corp., is pushing for the company to sell itself. The activist investor said the bank could be worth between $65 and $75 per share and it claimed to have spoken with potential buyers who are willing to pay the premium.
* Houston-based Prosperity Bancshares Inc. said it is possible it may acquire two or three banks that are about the size of Plano, Texas-based LegacyTexas Financial Group Inc. The bank is aiming to have $50 billion in assets in around five years, and said it is open to deals beyond its footprint in Oklahoma and Texas. It may also pursue smaller bank deals in its current markets.
* Dubuque, Iowa-based Heartland Financial USA Inc. is cultivating M&A prospects across its footprint by working on multiple potential deals at the same time, Executive Chairman Lynn Fuller said. The company's goal is to have all of its banking units attain assets of at least $1 billion.
* Novato, Calif.-based Bank of Marin Bancorp considers itself to be on the buy-side of a transaction but there are few available sellers in the San Francisco area, President and CEO Russell Colombo said. However, the CEO said the bank is potentially interested in acquiring a bank located in the Central Coast region of California.
Financial Services
* Barclays PLC is in talks to sell its New York-based automated options trading business to U.S.-based GTS Securities LLC after an activist investor called on the British banking giant to cut down its investment bank operations, sources told Bloomberg. The talks are in advanced stages but it is still not clear whether a deal will be announced.
* Certain shareholders of CAI International Inc. intend to continue having discussions with management as they believe the transportation finance company's stock price does not reflect its intrinsic value. The shareholders have also called on the company to engage with a financial adviser to explore strategic alternatives.
* After having its IPO in May 2018, digital lender GreenSky Inc. could be up for sale as management said it will explore strategic alternatives. The announcement came after it reported earnings that missed analysts' estimates, despite net income sharply increasing from the year-ago period, and a suspension of its earnings guidance while the strategic review is underway.
Insurance
* Global Risk Partners Ltd. is looking for a partial sale and reinvestment as private equity backer Penta Capital is nearing the end of is traditional investment period, Insurance Age reported. Interested buyers include Arthur J. Gallagher & Co., Willis Towers Watson PLC, Aon PLC and a number of unnamed private equity firms, according to the report.
* Atlas Financial Holdings Inc. said it has identified "value maximizing" strategic activities for shareholders. It continues to retain a financial adviser to explore alternatives such as a sale of the company or selling off one of its subsidiaries.
* Goldman Sachs Group Inc. is reportedly looking to sell Safe-Guard Products International LLC, which provides various vehicle protection services, sources told Reuters.
* Cigna Corp. is considering selling its group benefits insurance business, which could be valued at about $6 billion, four sources told Reuters.
* Prudential PLC's U.S. subsidiary Jackson National Life Insurance Co. will consider third-party funding and reinsurance to fund bolt-on acquisitions, Prudential's unit CEO Michael Falcon said. The CEO said the company wants to accelerate diversification away from variable annuities.

