Sterne Agee: With One Less Competitor, Pricing Power Should Accrue To HBHC

On December 22, Hancock Holding Company HBHC executed a definitive agreement to merge with Whitney Holding Corporation WTNY, whereby HBHC will issue 0.418 shares of its stock to WTNY holders, Sterne Agee reports. “The premium of 42% is high, but not unbelievable given the beaten-down nature of WTNY's valuation and performance over the past couple of years,” Sterne Agee writes. “With one less competitor in a consolidated market like LA, pricing power should accrue to HBHC.” Hancock Holding Company closed Wednesday at $34.58; Whitney Holding Corporation closed at $14.00.