Analyst: Fifth Third, BB
Fifth Third Bancorp could be a possible suitor if management changes at BB&T Corp. led to a merger between it and a similar bank, according to a report by Ladenburg Thalmann analyst Richard Bove.
While Bove said a BB&T-Fifth Third merger was “pure speculation” on his part, he also said it would be an interesting merger.
Both banks have a small-business orientation, and both believe in building add-on products to sell into that market, Bove wrote. Cincinnati-based Fifth Third (NASDAQ: FITB), has indicated a strong desire to expand in Southeastern markets. And until Winston-Salem, N.C.-based BB&T (NYSE: BBT) stopped pursuing mergers, it was headed to the Midwest, Bove wrote.
The difference, he said, is that Fifth Third touts the price of its services and BB&T focuses on service.
Fifth Third bought Charlotte, N.C.-based First Charter Corp. in June for $1.1 billion electronic check payday advance. The deal marked Fifth Third's debut in North Carolina.
On Wednesday, BB&T Chief Executive John Allison announced he would retire at the end of the year. Kelly King, chief operating officer, will take over as CEO. Those moves prompted Bove's report.
King is likely to place more emphasis on retail banking than on most other activities BB&T is involved in, Bove says. While Allison and King are close in age — Allison is 60, and King is 59 — they have very different personalities, Bove said.
“Mr. Allison would never accept anything but the controlling position and Mr. King may be more open to a shared arrangement,” he wrote.
Fifth Third is the largest bank in the Dayton area, while BB&T doesn't have any local operations.
Filed under: business by Wolf