Hibernia deal suffers hit from Katrina
Credit card company Capital One cut the amount it was to pay for New Orleans-based Hibernia Corporation by about $500 million after assessing the impact of Hurricane Katrina on Hibernia’s business in Louisiana, where it is the state’s largest bank. Before the hurricane struck, Capital One had agreed to pay $5.5 billion for Hibernia. Sixty of Hibernia’s 321 branches remained shut in Katrina’s wake, with 21 sustaining significant damage, but Capital One’s decision to downsize its offer was said to be mostly a result of the large number of commercial and consumer loans in Louisiana that are likely to be written off.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
