Canada's TD Bank (TD) agreed to buy South Financial (TSFG), a struggling Greenville, S.C.-based bank holding company with $12 billion in assets and 176 branches in the Carolinas and Florida.
TD buys the dip
Toronto-based TD, which previously purchased the Commerce Bank chain in the mid-Atlantic states and owns the TD Ameritrade online broker, said the deal is just the sort of transaction it has been searching for as it expands on the U.S. East Coast.
"We're gaining established commercial banking assets and a solid network of stores in attractive and growing markets within our Maine-to-Florida footprint," said TD Bank chief Ed Clark.
The deal also comes just weeks after South Financial promised to raise capital in a consent agreement with regulators at the Federal Reserve. The terms strongly suggest the clock was ticking for South Financial to find a buyer.
TD will pay just $61 million, or 28 cents a share, to acquire South Financial's stock. That's less than half the price the stock fetched Friday.
http://wallstreet.blogs.fortune.cnn.com/2010/05/17/fdic-scores-in-td-deal/
by Colin Barr
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