National Penn Bancshares - High Dividend Payer Announces Acquisition Of TF Financial

National Penn Bancshares (NPBC) announced the acquisition of TF Financial Corporation (THRD). The deal is rather modest, adding little less than 10% in total assets, but marks the bank's growth ambitions. That being said, I believe investors largely invest in National Penn for its generous dividend. Lack of historical capital gains makes it easy for me to shun the shares. Deal Highlights National Penn announced that it has entered into an agreement to acquire TF Financial. Under terms of the deal investors in TF Financial stand to receive 4.22 shares in National Penn, or $42.00 per share in cash upon their own election. The company has set an overall limit to a 40% cash component and 60% equity consideration in financing the deal. National Penn reports a 20 times earnings multiple for the deal while the price tag values the bank at 144% of its tangible book... Read more

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