Cuomo Asks Regulators to Block KeyCorp's Acquisition of First Niagara
February 10 2016 - 5:10PM
Dow Jones News
New York Gov. Andrew M. Cuomo on Wednesday asked federal
regulators to block KeyCorp's proposed buyout of First Niagara
Financial Group Inc. and threatened legal action, saying the deal
would be devastating for Upstate New York.
The merger, Mr. Cuomo said, would cut competition and would
"likely push consumers to rely on non-bank alternatives, such as
payday loans and check-cashing, which come with higher consumer
transaction costs."
Further, he said, it could cost thousands of jobs.
"Blocking this deal is the right thing to do--plain and simple,"
Mr. Cuomo said in a statement.
Cleveland-based Key disclosed in October it had agreed to buy
First Niagara in a deal valued at about $4.1 billion.
Both companies have scheduled special meetings on March 23 for
shareholders to vote on the proposal.
Representatives from the banks weren't immediately available for
comment.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
February 10, 2016 16:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
KeyCorp (NYSE:KEY)
Historical Stock Chart
From Mar 2024 to Apr 2024
KeyCorp (NYSE:KEY)
Historical Stock Chart
From Apr 2023 to Apr 2024
