Capital One snags Discover in $35.3B stock deal
Wall Street Breakfast
Seeking Alpha
4.1 • 1K Ratings
🗓️ 20 February 2024
⏱️ 6 minutes
🧾️ Download transcript
Summary
Episode transcripts seekingalpha.com/wsb.
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Transcript
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| 0:00.0 | Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning. |
| 0:08.0 | Good morning. Today is Tuesday, February 20th. I'm Julie Morgan. |
| 0:12.7 | Capital One will acquire Discover. |
| 0:15.2 | Bear is cutting its dividend by a lot. |
| 0:18.3 | And Palo Alto Networks reports earnings today. |
| 0:21.6 | Analysts expect an increase on its top and bottom lines. |
| 0:26.3 | Capital One confirmed on Monday that it agreed to acquire Discover Financial Services |
| 0:31.2 | and a stock-based deal valued at $35.3 billion. |
| 0:35.0 | This will create the largest U.S. credit card company by loan volume. |
| 0:40.0 | Under terms of the deal, each DFS holder will get 1.0192 shares of COF |
| 0:46.4 | representing a premium of almost 27% based on |
| 0:55.0 | Friday, Friday. Capital one expects the deal will generate 2.7 billion dollars in pre-tax synergies |
| 1:01.0 | and add more than 15% to a adjusted EPS in 2027. |
| 1:06.4 | It's also expected to deliver a return on invested capital of 16% in 2027, with an internal rate of return of more than 20%. |
| 1:16.2 | Upon closing of the Deal 3 Discover Board members to be named at a later date |
| 1:20.9 | will join the Capital One Board. |
| 1:23.0 | The transaction is expected to close in late 2024 or early 2025. |
| 1:29.0 | The companies will hold a conference call today at 8 a.m. |
| 1:32.1 | Eastern Time, pre-market Capital One is down 6% and |
| 1:36.4 | Discover is up 12%. Bear AG plans to shrink its dividend by 95% as it works to reduce The company says, |
| 1:43.2 | by 95% as it works to reduce debt. |
| 1:45.8 | Bayer shares rose about 1% in Germany on Monday after the dividend cut was |
... |
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