European Bank Investors Should Avoid Shorting Potential M&A Targets -- Market Talk

Dow Jones

Jan 06, 2025

1118 GMT - Investors need to be careful not to short European banks that are already in a takeover situation or are probable targets, Keefe, Bruyette & Woods says in a research report. Deals are likely to pick up this year as more lenders trade at or above tangible book value, making shorting trickier, analysts write. More banks will see the benefits of growing earnings through acquisitions rather than a decreasing share count. Besides deals concerning Spain's Sabadell, Germany's Commerzbank and Italy's Banco BPM, analysts see Permanent TSB, Unicaja, OSB Group, Banca Popolare di Sondrio and Monte dei Paschi as potential targets. They also see scope for small bolt-on deals in Central and Eastern Europe. Likely acquirers include KBC Group and Erste Bank. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

January 06, 2025 06:18 ET (11:18 GMT)

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Deals are likely to pick up this year as more lenders trade at or above tangible book value, making shorting trickier, analysts write. More banks will see the benefits of growing earnings through acquisitions rather than a decreasing share count. Besides deals concerning Spain's Sabadell, Germany's Commerzbank and Italy's Banco BPM, analysts see Permanent TSB, Unicaja, OSB Group, Banca Popolare di Sondrio and Monte dei Paschi as potential targets. They also see scope for small bolt-on deals in Central and Eastern Europe. Likely acquirers include KBC Group and Erste Bank. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 06, 2025 06:18 ET (11:18 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>European Bank Investors Should Avoid Shorting Potential M&A Targets -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEuropean Bank Investors Should Avoid Shorting Potential M&A Targets -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-01-06 19:18</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1118 GMT - Investors need to be careful not to short European banks that are already in a takeover situation or are probable targets, Keefe, Bruyette &amp; Woods says in a research report. Deals are likely to pick up this year as more lenders trade at or above tangible book value, making shorting trickier, analysts write. More banks will see the benefits of growing earnings through acquisitions rather than a decreasing share count. Besides deals concerning Spain's Sabadell, Germany's Commerzbank and Italy's Banco BPM, analysts see Permanent TSB, Unicaja, OSB Group, Banca Popolare di Sondrio and Monte dei Paschi as potential targets. They also see scope for small bolt-on deals in Central and Eastern Europe. Likely acquirers include KBC Group and Erste Bank. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 06, 2025 06:18 ET (11:18 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4521","symbol_name":"英国银行股","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2501087282","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2501087282","pubTimestamp":1736162280,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1118 GMT - Investors need to be careful not to short European banks that are already in a takeover situation or are probable targets, Keefe, Bruyette & Woods says in a research report. Deals are likely to pick up this year as more lenders trade at or above tangible book value, making shorting trickier, analysts write. More banks will see the benefits of growing earnings through acquisitions rather than a decreasing share count. Besides deals concerning Spain's Sabadell, Germany's Commerzbank and Italy's Banco BPM, analysts see Permanent TSB, Unicaja, OSB Group, Banca Popolare di Sondrio and Monte dei Paschi as potential targets. They also see scope for small bolt-on deals in Central and Eastern Europe. Likely acquirers include KBC Group and Erste Bank. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4521":"英国银行股","BK4207":"综合性银行","BK4211":"区域性银行","ISBC":"投资者银行","CRZBY":"Commerzbank AG","EBKDY":"Erste Group Bank AG","SAN":"桑坦德银行"},"translate_title":"欧洲银行投资者应避免做空潜在并购目标——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CRZBY":0.9,"ISBC":1,"EBKDY":0.9,"SAN":0.9},"content_text":"1118 GMT - Investors need to be careful not to short European banks that are already in a takeover situation or are probable targets, Keefe, Bruyette & Woods says in a research report. Deals are likely to pick up this year as more lenders trade at or above tangible book value, making shorting trickier, analysts write. More banks will see the benefits of growing earnings through acquisitions rather than a decreasing share count. Besides deals concerning Spain's Sabadell, Germany's Commerzbank and Italy's Banco BPM, analysts see Permanent TSB, Unicaja, OSB Group, Banca Popolare di Sondrio and Monte dei Paschi as potential targets. They also see scope for small bolt-on deals in Central and Eastern Europe. Likely acquirers include KBC Group and Erste Bank. (elena.vardon@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  January 06, 2025 06:18 ET (11:18 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}