Publications
Publications
  • February 2008 (Revised October 2010)
  • Case
  • HBS Case Collection

Mellon Financial and The Bank of New York

By: Carliss Y. Baldwin and Ryan Taliaferro
  • Format:Print
  • | Pages:32
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Abstract

Bob Kelly, the new CEO of Mellon Financial, is considering the terms of a proposed "merger of equals" with The Bank of New York, just before the final Board meeting to approve the deal. The combination offers a great strategic fit, and the expected synergies are large. However, the proposed exchange ration values Mellon at a discount to its last closing price, even though it is the smaller and non-surviving bank. Kelly must consider the various dimensions of the deal-specifically the value of synergies, the form of consideration, and the deal's impact on the EPS of both sides-and determine whether it is in the best interests of Mellon, the city of Pittsburgh, and Mellon's shareholders.

Keywords

Mergers and Acquisitions; Equity; Banks and Banking; Business and Shareholder Relations; Valuation; Banking Industry; Pittsburgh

Citation

Baldwin, Carliss Y., and Ryan Taliaferro. "Mellon Financial and The Bank of New York." Harvard Business School Case 208-129, February 2008. (Revised October 2010.)

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