SunTrust Bank (NYSE:STI) shares moved up marginally after rumors surfaced that the company may become a takeover target for Citigroup (NYSE:C) who may be looking to increase its presence in Florida while increasing its profitability through cost savings. One banker noted that the company was in talks with a large bank while another said he would be surprised if the bank wasn't in talks with two to three other banks.

SunTrust has long been the target of takeover speculation, but never has Citigroup been mentioned as a potential candidate. Instead, many believed that Wells Fargo, JP Morgan, and PNC would be the most likely suitors. Citigroup is different from these players in that its assets are large but it has a relatively small branch presence and profitability. This would suggest that a SunTrust takeover would be make sense for the company to expand its footprint.

SunTrust CEO Jim Wells was quoted as saying that his company was exploring all options to help turn the company around. More, many analysts have suggested that Citigroup's organic growth has been slowing and it may be forced to pursue acquisitions in the U.S. markets. As for a price, many prior reports have thrown around $105 to $115 per share as likely buyout prices. And this makes STI a stock worth watching!

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