The Comerica Incorporated CMA 0.59% board may be warming to the idea of a possible sale of the company.
A source familiar with the matter tells Benzinga that the company may not simply be limiting itself to cost-cutting measures and could take advantage of the valuation boost the stock has received in recent weeks.
Following a comprehensive review by Boston Consulting Group this year, Comerica announced a series of cost-cutting measures In July intended to save the company $160 million by the end of 2018. The plan included a 9 percent reduction in Comerica’s workforce.
Shareholders who had been hoping for a buyout weren’t impressed by the plan, and Comerica’s stock dropped 9 percent in the first two weeks after the initial plan was released.
However, the cost-cutting measures may have supplied the bank with valuable leverage in potential buyout negotiations, especially now that oil prices seem to have stabilized.
A source tells Benzinga that past potential buyers were concerned with the risk related to Comerica’s loan book exposure to the energy sector. Those risks may now have subsided, leaving the door open for potential buyers.
According to the source, the company might also opt…
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