National City (NCC) Could Receive $6B Infusion -WSJ

The Wall Street Journal is reporting that National City (NYSE: NCC) may be close to signing a deal with a group of investors lead by Corsair Capital, which would infuse about $6 billion of capital in the Company. The deal calls for the investor group to pay about $5 per share of National City, and would bring Corsair's stake to 9.9%. At Friday's closing price of $8.33, the $5 proposal represents a 39% discount from the last trade.

The WSJ article mentions National City's several attempts at attracting outside investors or acquirers: KeyCorp (NYSE: KEY), Fifth Third Bank (Nasdaq: FITB) and Bank of Nova Scotia (NYSE: BNS) have all looked into purchasing the bank, but have walked away. Furthermore, the article notes that "Regulators have been prodding National City officials to either replenish its capital base or find a buyer." As this deal would satisfy the former option, investors are speculating that a sale of National City now could be off.

Check out StreetInsider's summary of analyst comments on the potential prospects for a National City sale.

National City Corporation, a financial holding company, provides commercial and retail banking, mortgage financing and servicing, consumer finance, and asset management services in the United States. [BCS]

You May Also Be Interested In

• Idex Corp. (IEX) Reiterated at Buy by Stifel
• DA Davidson Starts Comfort Systems USA (FIX) at Buy
• Clear Street Reiterates Buy Rating on Anterix Inc. (ATEX)