Capital One seen buying Hibernia
Credit-card issuer to pay $5.3 billion
NEW YORK -- Credit-card issuer Capital One Financial Corp. is close to a deal to buy Hibernia Corp. for $5.3 billion in cash and stock in a move to help it expand in the Southern United States, two sources familiar with the matter said yesterday.
McLean, Va.-based Capital One, one of the largest providers of MasterCard and Visa credit cards, will pay $33 for each share in Hibernia, of which 45 percent will be cash and 55 percent stock, the sources said. The deal could be announced as early as today.
New Orleans-based Hibernia shares closed at $26.57 on the New York Stock Exchange on Friday, giving it a market value of $4.1 billion. Capital One closed at $78.08 on the NYSE on Friday.
Hibernia shareholders will end up with about 14 percent of the stock of Capital One when the deal closes, the sources said.
Spokespeople for Capital One and Hibernia couldn't be reached for comment yesterday. 