Capital One Financial (COF) has released an update.
Capital One Financial Corporation has announced a merger with Discover Financial Services in a two-step process that will ultimately see Discover and its banking subsidiary become part of Capital One. The agreement, approved by both companies’ boards, stipulates an exchange ratio for Discover’s common stock into Capital One shares, with provisions for Discover’s preferred stock and equity awards as well. This deal is contingent on shareholder and regulatory approval and includes a significant termination fee if either party pursues alternative proposals. This strategic move is set to reshape the financial services landscape, pending the satisfaction of customary closing conditions and legal approvals.
For further insights into COF stock, check out TipRanks’ Stock Analysis page.
