Cleveland-based KeyCorp has agreed to purchase First Niagara Financial Group Inc of Buffalo for $4.1 billion in the biggest deal this year between two U.S. regional banks.The deal announced on Friday, which will create the 13th biggest U.S.-based commercial bank, is the latest in a string of mergers among smaller U.S. banks spurred by years of historically low interest rates and higher costs related to stricter regulations imposed since the financial crisis. KeyCorp offered the equivalent of $11.40 per share for First Niagara - 0.68 of its own shares and $2.30 in cash, a premium of 9.8 percent to First Niagara's closing price on Thursday.First Niagara's stock was trading at $10.68 before the bell on Friday, while KeyCorp was down 3.2 percent at $12.95.
First Niagara Financial Group, Inc. is a bank holding company. Shares of FNFG fell by 4.24% or $-0.46/share to $10.38. In the past year, the shares have traded as low as $7.21 and as high as $11.22. On average, 3155600 shares of FNFG exchange hands on a given day and today's volume is recorded at 11781865.
KeyCorp is a bank holding company. The Bank operates through its subsidiary, KeyBank National Association, which is engaged in providing banking services. Shares of KEY fell by 3.74% or $-0.52/share to $13.38. In the past year, the shares have traded as low as $12.04 and as high as $15.70. On average, 10529500 shares of KEY exchange hands on a given day and today's volume is recorded at 32376923.