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Analyst: KeyCorp 'probable' takeover target

Cincinnati Business Courier - November 10, 2006

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KeyCorp is a potential acquisition target for Bank of America Corp., the No. 2 U.S. bank, according to a research report by Punk, Ziegel & Co. analyst Richard Bove.

 

Bove wrote Bank of America's (NYSE: BAC) market share is 9.2 percent, below the 10 percent watermark that could prevent it from making domestic acquisitions. If the latest Federal Deposit Insurance Corp. figures are correct, Bank of America could acquire another $54 billion in deposits.

 

Bank of America would be precluded from buying the top 11 banks in the country, but it could buy any of the other 9,000, Bove wrote. He added the Midwest is a likely place for an acquisition because it is "the only region of the country the bank does not blanket with a series of branches."

 

"Who might the bank buy? Not U.S. Bancorp (NYSE: USB), it is too big," Bove wrote. "Everyone else in the market is possible and KeyCorp (NYSE: KEY) might even be probable."

 

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wow....it took nearly a whole year for this thread to come back to life

If this merger were to happen hopefully Cleveland would become BofA's midwestern headquarters. Does anyone know if this would help or hurt the Cleveland and Ohio economy?

It's likely that it would have some negative impact on Cleveland's economy - there would be staff reductions in the executive ranks as well as the elimination of redundant positions (human resources, etc.). If BofA did select Cleveland to be the midwest HQ, it's conceivable that there would be growth. It's really a speculative issue right now.

 

What's interesting is that Bank of New York just announced today that they'll be buying Mellon, based in Pittsburgh.

Oh what the heck, let's take another gander at how the BofA logo would look on Key Tower :lol:

 

It's likely that it would have some negative impact on Cleveland's economy - there would be staff reductions in the executive ranks as well as the elimination of redundant positions (human resources, etc.). If BofA did select Cleveland to be the midwest HQ, it's conceivable that there would be growth. It's really a speculative issue right now.

 

What's interesting is that Bank of New York just announced today that they'll be buying Mellon, based in Pittsburgh.

 

I agree.  You would lose many of the high-level, high-paying executive jobs.  Plus, I think you would lose a lot of corporate-level departments as well.  You may end up with more processing, mid-tier jobs.  But hell, if it's going to be bought, being their midwestern HQ (if there is such a thing within BoA) would be better than nothing.

Maybe that would cause them to move their Beachwood employees downtown? I am still hoping this does not happen though.