ONB - Will the Merger Between Old National Bancorp and First Midwest Bancorp Enhance Shareholder Value?
In the third merger-of-equals (MOE) this year, Old National Bancorp (NASDAQ: ONB) is teaming up with First Midwest Bancorp (NASDAQ: FMBI) to create a $45 billion asset bank in the Midwest. Although technically just a merger, an MOE is when two banks of somewhat similar sizes merge with the plan to really keep both banks somewhat intact, including the management team, board of directors, and various business lines in each bank.
The overall goal is to use scale to spread a smaller amount of expenses over a greater revenue base that will ultimately drive returns, while also giving the bank greater ability to invest in technology. Let's take a look at whether this deal can enhance shareholder value.
For further details see:
Will the Merger Between Old National Bancorp and First Midwest Bancorp Enhance Shareholder Value?