Odeon’s Bove sees RBC making a run at First Republic

Odeon Capital analyst Dick Bove has been told in the past that Royal Bank of Canada (RY) approached First Republic Bank (FRC) about merging the bank with its City National Bank unit. The analyst, who does not formally cover First Republic but knows its founder Jim Herbert, believes RBC will again pursue its desire to buy First Republic following the stock’s recent selloff. "It is not unrealistic to assume that First Republic may now listen," the analyst tells investors in a research note, citing the bank’s older management and them possibly not wanting to struggle through a new housing cycle. First Republic shares in midday trading are up 50% to $46.80.