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 will create the 13th biggest U.S.-based commercial bank and is the latest in a string of mergers among smaller U.S. banks, spurred by years of near-zero 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 nearly flat at $10.40 on Friday, while KeyCorp was down 6.7 percent at $12.49.
First Niagara Financial Group, Inc. is a bank holding company. Shares of FNFG traded higher by 0.39% or $0.04/share to $10.42. 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 47384303.
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 6.5% or $-0.87/share to $12.51. 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 53783298.