Tuesday, February 28, 2012

Court blocks BB&T acquisition of BankAtlantic

A Delaware court has blocked BB&T's acquisition of most of Florida-based BankAtlantic, disapproving of the deal's structure.

In November, the Winston-Salem bank said it was buying BankAtlantic for $301 million and taking on $2.1 billion in loans and $3.3 billion in deposits. The purchase would have bumped BB&T into the No. 6 slot in the Miami metro area.

But as part of the deal, BB&T would not take on any distressed assets -- or $260 million of trust preferred securities. The Delaware judge ruled that any deal would have to include that class of securities.

In a research note, bank analyst Marty Mosby of Guggenheim Securities said he does not expect BB&T to significantly up its offer to include those securities. Mosby said he does expect the bank to continue to eye acquisitions in South Florida.

BankAtlantic could still appeal the ruling.