Stock Track | Prosperity Bancshares Plunges 5.31% in Pre-market on $2 Billion Stellar Bancorp Acquisition and $100 Million Transaction Costs

Stock Track
Jan 28

Prosperity Bancshares (PB) experienced a pre-market plunge of 5.31% on Wednesday, following the announcement of its agreement to acquire Stellar Bancorp in a deal valued at approximately $2 billion.

The transaction, structured as a cash-and-stock deal, will see Prosperity issue 0.3803 of its shares and $11.36 in cash for each Stellar share. Investors reacted negatively, likely due to concerns over share dilution and the significant one-time pre-tax transaction expenses estimated at about $100 million related to the merger.

This downward movement occurred alongside the release of the company's fourth-quarter earnings, which reported adjusted earnings per share in line with analyst expectations but a slight revenue miss, potentially compounding investor caution regarding the major acquisition.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10