Fifth Third to buy Chicago’s MB Financial in deal valued at $4.7 billion
Shares of MB Financial Inc. are indicated up over 10% in premarket trade Monday, after the Chicago-based regional bank agreed to be acquired by Fifth Third Bancorp in a deal valued at $4.7 billion. Under terms of the deal, Fifth Third will exchange 1.45 of its shares and $5.54 in cash for each MB Financial share outstanding. Based on Friday’s stock closing prices, the deal values MB Financial shares at $54.20 each, a 24% premium, and well above the Jan. 4, 2017 record close of $47.87. Fifth Third expects the deal to add to earnings in the first year. MB Financial’s stock has lost 2.0% year to date through Friday, while Fifth Third shares have climbed 10.6%, the SPDR Financial Select Sector ETF has edged up 0.1% and the S&P 500 has gained 1.5%.
Source : MTV
