Parting ways

12 May 2020 By Antony Currie Follow @AntonyMCurrie

The regional bank is selling its 22% stake in the asset manager, worth $17 bln. PNC has had a great ride, but new rules could have become a headache for both companies. The timing means boss Bill Demchak will have a big war chest to go looking for bargain acquisitions.

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PNC Financial Services is to dispose of its entire stake in BlackRock, the company said on May 11. The Pittsburgh-based bank owns more than 22% of the world’s largest asset manager through a mix of common shares and preferred stock that converts to common shares when sold.

Most of the stake, which is worth just over $17 billion based on BlackRock’s closing price on May 11, will be sold through a secondary offering managed by Morgan Stanley, Citi and Evercore ISI. BlackRock will purchase $1.1 billion-worth directly from PNC. The bank is also donating 500,000 shares, worth $247 million, to its charitable foundation

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