Capital One Financial Corp. (COF), the lender that bought ING Groep NV’s online U.S. bank, sold $1.26 billion of shares for 1.3 percent below yesterday’s closing price as it prepares to purchase HSBC Plc’s U.S. card business.
The credit-card issuer sold 24.4 million shares for $51.65 each, according to data compiled by Bloomberg. The McLean, Virginia-based firm’s stock closed at $52.33 yesterday in New York. It fell 0.5 percent from that price at 9:33 a.m. today.
The sale will help the lender complete its second major acquisition of the past year as Chief Executive Officer Richard Fairbank, 61, works to transform the bank into one of the largest in the U.S. Capital One completed a $9 billion purchase of ING Direct last month to gain about 7 million customers and $80 billion in deposits.
The transaction with HSBC, Europe’s largest bank, is a “very financially attractive acquisition, as we thought from day one,” Chief Financial Officer Gary Perlin said at a presentation in New York on Feb. 16.
The bank agreed in August to purchase HSBC’s U.S. credit- card business for a premium of about $2.6 billion. Capital One has said it expects the acquisition, which comes with about $30 billion of assets, to be completed in the second quarter. The deal will generate a post-tax gain of $2.4 billion for HSBC, the London-based lender said in August, when the deal was announced.
To contact the reporter on this story: Andrea Ludtke in New York at email@example.com; Dakin Campbell in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Dan Kraut at email@example.com; David Scheer at firstname.lastname@example.org.