During a time when it seems like banks are all merging and buying out
smaller banks, Capital One continues to grow. Capital One is
going to be buying out North Fork Bank for approximately $14.6
billion in cash and company stock. This buyout deal will rank
Capital One as one of the top 10 banks in the country.
North Fork bank and Capital One combined will create the sixth largest
depository institution in New York. The deal between these two
corporations was finalized on March 12, 2006. Once the buy out
has completed, the new corporation will have 655 bank branches and over
50 million customer accounts. On March 10th, investors that held
shares in North Fork Bank will receive stock valued at $31.18 per
company share. The new company will also hold $36.6 billion in
deposits.
Capital One says that the corporation may buy back $3 billion worth of
shares in common stock. Capital One, which is a holding company,
is a leader in consumer financial services. This new company will
have a loan portfolio of over $143 billion. Capital One, once
combined with North Fork is expected to become a huge corporation- and
a force to be reckoned with, considering that Capital One is already
one of the largest small business lenders in the nation.
Investors expect this new combined company will be very successful, and
become and maintain a ranking as one of the nations top banks.
