Hit #133 (Mellon)

Mellon Financial (MEL) is being bought by Bank of New York (BK) in a deal valuing Mellon shares at around $42. The offer price represents a premium of 52.1% over my average cost per share of $27.6. I will be holding onto the shares in the new company, and will be looking to add when possible.

This particular combination has been rumored to be in the works for a long time now, since Bank of New York had tried unsuccessfully to buy Mellon in the past. The deal has been welcomed broadly, with shares of both companies surging ahead post-announcement. Then again, what is not to like, except for the new name Bank of New York Mellon!

The combined entity will have a big share of the asset custodian / management market. Any sharp pullback will be a good time to accumulate the new company's shares for long-term investors.

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