The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Should PNC Break Up With BlackRock? Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, June 13, 2013

Should PNC Break Up With BlackRock?

News summary by MFWire's editors

PNC Financial Services Group will have to make a decision on whether or not to sell or hold its 21 percent stake in BlackRock [profile], writes Bloomberg.

If PNC sells its stock, it could return billion in capital to investors and bolster its share price. The market value of PNC's stake in Black Rock is $9.46 billion. The investment amounts to $5.6 billion on its balance sheet.

If PNC keeps its current position, however, it will continue to have a steady earnings stream . That may come in handy when tepid loan growth and low interest rates are squeezing its margins.

Keith Murray, an analyst at Nomura Holdings said the buyback potential is limited if PNC sold the stake:
The after-tax gain would be about $2.6 billion as of June 6, according to the note. Assuming PNC got approval to repurchase stock, that sum would equate to 37 million shares, or “not a great trade-off versus losing 14 percent of earnings per share,” he wrote.

Edited by: Casey Quinlan

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use