Discover Financial Services (DFS) has released an update.
Discover Financial Services is set to merge with Capital One Financial Corporation in a strategic move that will reshape the financial landscape. Under the agreement, Discover will initially merge with a subsidiary of Capital One, and then the combined entity will merge into Capital One. Discover’s common stock will be exchanged for Capital One shares, while preferred stock and other equity awards will be converted according to specific terms. The merger, which has been approved unanimously by both companies’ boards, is contingent on stockholder approval and regulatory clearances, with a significant termination fee agreed upon for certain conditions. This consolidation aims to create a more robust financial entity positioned for future growth.
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