Going Once, Going Twice...
In late August Barnett Banks, Inc., announced it was going on the
auction block and would be sold to the highest bidder. It was
speculated that NationsBank, Sun Trust, First Union, Bank One,
Wachoiva, Norwest, and BankAmerica would be among the bidders, but it
was NationsBank who won the bidding war.
In early September, the largest banking company in Florida was
acquired by NationsBank for a reported $14.1 billion. But analysts
wonder if NationsBank has acquired too much too fast.
Analysts fear NationsBank is diluting its earnings because it will
undergo $600-$700 in restructuring charges and will not see any
earnings from the acquisition until 1999. Who says it is only ISO
acquisitions that seem over-priced?
[Go Back]
