No Buyout Coming To BankUnited (BKU, BBT)

BankUnited, Inc. (NYSE: BKU) is going to be under some pressure on Thursday.  The bank had only re-emerged as a public entity last year and last week came rumors that BankUnited may be the subject of a go-private transaction or that it may be acquired by another larger banking outfit.  BB&T Corporation (NYSE: BBT) was all over the news of having made a bid.

The company is responding to market rumors and that was after a 3.8% drop to $24.95 on Wednesday.  BankUnited noted that “regarding the recent articles and publicity about the Company, it has confirmed that a preliminary process did occur whereby the Company considered its strategic alternatives. That process has concluded and the Company will continue to pursue its original plan to build the premier bank throughout Florida as an independent institution.”

In short, no buyout nor merger is heading its way.  At least that “no friendly buyout or merger offer.”  The company did not offer earnings guidance ahead of next week’s report but it did note that it opened twelve new branches in the fourth quarter, that deposit growth went from $6.9 billion to $7.4 billion (24% annualized), and that its new loan growth went from $1.3 billion to $1.7 billion (139% annualized).

Frankly, a buyout seemed too soon here even if private equity and turnaround player Wilbur Ross and his team is capable of restoring &^%$ back into shinola.   

Shares are indicated down 10% around $22.50 in the after-hours trading session.

JON C. OGG