Keefe Bruyette analyst Sanjay Sakhrani says a report from Bloomberg suggested the New York Attorney General is investigating the Capital One (COF), Discover (DFS) deal and has asked a state court for permission to issue subpoenas as part of an ongoing antitrust probe. The news “could signal a coordinated advocacy deal opposition by parties opposed to the deal,” which could apply pressure to the situation and the stocks, the analyst tells investors in a research note. However, Keefe does not think the New York case “is necessarily a make or break for the deal in order to get regulatory approval” Both Capital One and Discover continue to trade at attractive valuations, contends the firm
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