ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, September 28, 1996 TAG: 9609300028
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Bloomberg Business News
Signet Banking Corp. said Friday that it is not for sale, despite a stock surge this week on speculation that the company was a takeover target.
Signet is ``not for sale; it has not been and is currently not engaged in any merger discussions and it will continue to pursue its current business plan,'' the company said in a statement.
The stock rose as much as 17 percent in the past week as traders bet that Signet would be the next bank to merge or to be taken over, as the bank industry goes through an unprecedented wave of mergers.
Takeover speculation was fueled Friday when Business Week, citing unidentified sources, reported Signet was negotiating with First Union Corp. of Charlotte, N.C.
Signet shares rose as much as $1.88 to $29 before trading was halted by the New York Stock Exchange, as volume of 750,000 shares more than doubled its daily average over the last three months of 304,000 shares.
Money managers still believe Signet will be taken over eventually, after two years in which its earnings advanced more slowly than those of many of its rivals.
``They are ripe to be taken over,'' said Greg Church of Church Capital Management which manages a $400 million portfolio. ``They're in a great area, they would be a great filler position for a bank like First Union.'' Signet has strong market shares in Virginia communities where First Union has little or no presence, including Richmond.
Richmond-based Signet bank has about $11 billion in assets and 250 branches in Virginia, Maryland and Washington.
Signet has six branches in the Roanoke Valley with a free-standing automated teller machine in West Salem. A spokesman for the bank estimated its Roanoke employment at 50 to 60 people.
- Staff writer Mag Poff contributed to this report.
LENGTH: Short : 43 linesby CNB