SunTrust Banks Inc.
(NYSE:STI) shares continued their move up this week after the Wall
Street Journal reported that the bank could become a buyout target now
that it has shed its Coca Cola (NYSE:KO) holdings. The company had
avoided such talks in the past using its KO holdings as a pseudo-poison
pill, but now a sale of the eighth largest U.S. bank doesn't seem so
distant from many analysts and investors.
Is there any evidence
to support the theory? Well, according to the WSJ, executives at the
company maintain that the company can keep going it alone, but
outsiders say that evidence is mounting that selling out is an option
being considered by directors. In fact, management announced Monday
that it sees few acquisition opportunities. Instead, the proceeds of
the KO sale will be used to fund a share buyback. Combined, these are
all good indications that the company is keeping itself cheap, meaning
that an acquisition is definitely not out of the cards. This is
definitely a
stock to watch!
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