Is COF Ready to Be Sold Yet?
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Is it time for a Capital One Financial Corp (NYSE: COF) buyout yet? This is the question on some investors' minds today after there was another deal in the credit card space - HSBC bought smaller player Metris Companies Inc (NYSE: MXT) this morning. In addition to today�s deal, other recent deals in the space include Bank of America's (NYSE: BAC) deal to buy MBNA (NYSE: KRB) and Washington Mutual�s (NYSE: WM) deal to acquire Providian Financial (NYSE: PVN).
Rumors of a Capital One takeover have been in the market for years, and there is little doubt that the company has been approached by potential suitors given all the M&A activity in the space. One must assume that the stumbling-block is price. Some think COF could be worth $100 or more in a deal. But how much does management think the company is worth? - and is there anyone will to pay that magic number? Whatever the case, COF appears to be in the driver seat currently and looks in no hurry to do a deal, which investors hope is a move that will ultimately benefit them. But if we were consultants to COF management we might suggest to them - "Get while the gettin' is good!" - but maybe that's why we're not consultants.
Rumors of a Capital One takeover have been in the market for years, and there is little doubt that the company has been approached by potential suitors given all the M&A activity in the space. One must assume that the stumbling-block is price. Some think COF could be worth $100 or more in a deal. But how much does management think the company is worth? - and is there anyone will to pay that magic number? Whatever the case, COF appears to be in the driver seat currently and looks in no hurry to do a deal, which investors hope is a move that will ultimately benefit them. But if we were consultants to COF management we might suggest to them - "Get while the gettin' is good!" - but maybe that's why we're not consultants.
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