Tags: BNY | Mellon | Buy | PNC

Report: BNY Mellon in Talks to Buy Unit of PNC

Friday, 29 Jan 2010 01:29 PM

Bank of New York Mellon is in late-stage talks to buy a PNC Financial Services business for about $2.5 billion, the Wall Street Journal reported, citing people familiar with the matter.

Pittsburgh-based PNC has been shopping its PNC Global Investment Servicing business, which provides back-office processing, for several months, these people told the newspaper.

A deal, which could come as soon as next week, could help the bank pay back its $7.6 billion in bank bailout funds, according to the Journal.

PNC Chief Executive James Rohr told Reuters in December he plans to repay the money from the U.S. government's Troubled Asset Relief Program this year but he said he is in no rush.

BNY Mellon , the largest custody bank, last week reported fourth quarter earnings jumped to $712 million from $50 million a year earlier.

Chief Executive Robert Kelly, speaking at an event in London on Thursday, said the company takes a cautious stance on acquisitions.

Any deal would have to make strategic sense and be financially attractive, he said.

"Acquisition opportunities would have to be in asset management or securities processing, and it would have to be products or services we don't have today, or it would have to be in geographies we're not in today,'' Kelly told students at London's City University.

© 2017 Thomson/Reuters. All rights reserved.

   
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Bank of New York Mellon is in late-stage talks to buy a PNC Financial Services business for about $2.5 billion, the Wall Street Journal reported, citing people familiar with the matter. Pittsburgh-based PNC has been shopping its PNC Global Investment Servicing business,...
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2010-29-29
Friday, 29 Jan 2010 01:29 PM
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