Rumors Swirling Around CIT
Fox Business Network reported, according to investment bankers with direct knowledge of the matter, that CIT Group CEO John Thain has been quietly shopping the firm to a larger player with the goal of selling possibly to a big bank and emerging as a player to run the bigger company.
Fox noted that bankers are saying Thain began putting out feelers to sell CIT after the firm failed in its bid to purchase ING Direct, which was bought by Capital One earlier in the year in a $9 billion deal.
The Fox report also noted that the firm BTIG LLC put out a research note recently that said well-capitalized Canadian banks would be in the best position to purchase CIT, largely because “the company has re-established itself as a leader in the U.S. middle-market lending space as evidenced by over $4 billion in new loan commitments last year.”
Meanwhile, according to a related Fox News story, Stifel Nicolaus analyst Christopher Mutascio is saying Wells Fargo should consider expanding by acquiring CIT, though bankers say Wells is looking to add to its asset management business, not expanding its lending unit. “CIT would make a financially attractive acquisition target” for Wells Fargo, allowing the banking giant to scoop up CIT’s tax-sheltering $4 billion of net operating loss carry forwards, the analyst said, according to Fox.
To read the Fox Business report: click here.
To read the related Fox Business report: click here.