Mercantile: A Smart Buy for PNC?

While shares of the smaller bank popped on news of the deal, PNC slid on worries that the purchase is too pricey

Investors snapped up shares of Mercantile Bankshares (MRBK) Monday after the company announced it had agreed to be acquired by big regional bank PNC Financial Services (PNC) for $6 billion, or $47.24 per share. Mercantile holders will receive 0.4184 PNC share plus $16.45 cash per Mercantile share. Shares of Mercantile jumped more than 21% to $44.55 in midday Monday trading, but PNC's stock slipped 5.6% to $69.50 as Wall Street fretted about the purchase price.

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