FIBK - Why Shares of Great Western Bancorp Are Rising Today
Shares of the $13 billion asset Great Western Bancorp (NYSE: GWB) traded more than 14% higher as of 12:08 p.m. EDT after the bank announced that it plans to be acquired by First Interstate Bancsystem (NASDAQ: FIBK) .
First Interstate, based in Billings, Montana, intends to purchase Great Western, which is based in South Dakota, in an all-stock deal valued at roughly $2 billion, or $35.65 per Great Western share. That values Great Western at roughly 170% tangible book value, which is a bank's equity minus its goodwill and intangible assets, and a measure of what the bank would be worth if it were to be immediately liquidated.
The deal will grow First Interstate to $32 billion in assets and expand the bank's presence in Sioux Falls, South Dakota; Omaha, Nebraska; and Des Moines, Iowa.
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Why Shares of Great Western Bancorp Are Rising Today