BiggnightsSayonara, Union Bank of California
August 18th 2008 21:09
Union Bank of California, a commercial bank that holds special meaning to me, has agreed to sell the remaining third not already owned by Mitsubishi UFJ Financial Group Inc. to the Japanese bank.
Mitsubishi is expected to use this as a springboard to more acquisitions of US banks.
Before people begin to panic, recall that in the past there have been foreign buying sprees whenever the dollar was weak for extended periods. This is just another swing of the pendulum, which will never come to rest in huge dynamic economy we have here.
Mitsubishi, Japan's largest bank, raised its bid for the third of the company it doesn't own by 17 percent, valuing the San Francisco-based lender at $10.1 billion. UnionBanCal's board will recommend the $73.50-a-share offer to shareholders, the companies said today in a statement.
The deal is the biggest announced takeover of a U.S. bank this year. The lender, with 330 branches in California, Washington and Oregon, reported second-quarter profit that beat analysts' estimates after shunning subprime lending and avoiding the worst of the U.S. mortgage market collapse.
(Bloomberg)The deal is the biggest announced takeover of a U.S. bank this year. The lender, with 330 branches in California, Washington and Oregon, reported second-quarter profit that beat analysts' estimates after shunning subprime lending and avoiding the worst of the U.S. mortgage market collapse.
Mitsubishi is expected to use this as a springboard to more acquisitions of US banks.
Before people begin to panic, recall that in the past there have been foreign buying sprees whenever the dollar was weak for extended periods. This is just another swing of the pendulum, which will never come to rest in huge dynamic economy we have here.
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