For the second time this week, I rolled out of bed to find my portfolio had been changed. Now this one was not unexpected as First Niagara was a resident of my Penalty Box. So unlike DUK’s all cash acquisition of PNY, Key Bank will acquire FNFG in a stock and cash transaction.
What this means for me:
- $2.30 cash per share
- .68 KEY shares per FNFG share
With KEY closing at $13.38 and FNFG closing at $10.38, total value comes in at roughly $11.40 per FNFG share. This represents a premium of about 9% – not large, but probably fair given FNFG’s issues. With my cost basis $8.44, my gain on this investment comes in at 35% for less than 2 years work.
Looks like I’m happy to become part of the KEY family.