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Huntington Bancshares Inc. management defended its modeling for tangible book value dilution earnback associated with its acquisition of Akron, Ohio-based FirstMerit Corp. during an investor presentation on Feb. 10.
Chairman, President & CEO Stephen Steinour devoted a slide during his presentation at the Credit Suisse Financial Services Forum to discussing the disparities and criticisms of the bank's projected earnback, a figure that many of the sell-side analysts who follow the bank believe to be too short. Huntington announced on Jan. 26 that it agreed to acquire FirstMerit for an announced deal value of $3.4 billion. The deal carried a price to tangible book value of 169.2% and tangible book value per share dilution of about 12%.
The deal price and accompanying earnback period was criticized...