PNC to buy BBVA’s U.S. operations
Deal to acquire Houston-based firm creates U.S.’ biggest regional bank
PNC Financial Services Group has agreed to buy BBVA’s Houston-based U.S. banking operations for $11.6 billion, vaulting past rivals to become the country’s largest regional bank.
PNC’s purchase uses the $14 billion it raised earlier this year from selling its stake in BlackRock Inc. to fuel an expansion into Texas and California and to compete with U.S. retail banking giants. For BBVA, the deal sheds a recent source of writedowns while giving the Spanish lender capital to possibly pursue acquisitions of its own.
Robert Reilly, PNC’s chief financial officer, said the bank plans to continue business operations out of Houston after the acquisition is completed— a process
that will take until June at the earliest.
“The thing that’s unique about this transaction as opposed to what we would call overlap transactions is this is an extension of our geography,” he said. “It’s not where two banks merge and realize that they havemore than they need.”
While he couldn’t comment on whether the number of employees and branches will remain the same after the purchase, he said PNC promises “to put together the best team, the best people and the best markets to win. And a lot of that will be in Houston.” BBVA currently employs 1,447 people in the Houston region.
PNC chose to expand its presence in Houston, where it currently operates five branches, because of the city’s diversity and growth, Reilly said. The transaction, which allowed PNC to expand into a number of markets, will also help the lender bulk up to compete with banking giants such as JPMorgan Chase & Co. and Bank of America Corp., which are moving into new states and spending billions annually on digital offerings.
“In the stroke of a deal, we’ll grow by 20 percent and become a very large player in banking on a national basis,” Reilly said. “Frankly, we think the time is ripe
to call them first to find out your options “for free.” Wyndham is one of the largest timeshare companies. Maybe your timeshare company has a similar program. (Or maybe it’s another way to upsell their existing customers. Be careful not to be talked into buying even more days or points!)
On your phone call, stress to them that you are never going to use the time share and that you simply want to cancel or do a “deed-back.” It’s probably not a good idea to mention you have plenty of cash and no debts.
You could also try to sell the timeshare yourself. But based upon the many letters and questions I have received over the years from readers, this option will likely not succeed. Unless you own the week of Christmas in a prime location, it is usually impossible to sell a timeshare.
Without question, you should avoid the companies that promise to get you out of the contract. You know they are in business to make money, and they don’t get paid by the resort that sold you the time share. That leaves you as their only source for payment. Plus, they can’t do anything more than you can do on your own.
You could possibly hire a board certified “consumer and commercial law” attorney, or some other attorney who has experience with time shares. A lawyer might be able to find a misrepresentation that was made in your contract, or possibly some other reason to invalidate the purchase. But typically, this will not be the case. In the end, hiring a lawyer might cost you a lot of money, with no better results than you can get yourself.
The idea to stop paying is not a good one, but it may be your only option, especially if your call to the timeshare company gets you nowhere. You should view not paying as a last resort, because the timeshare company might turn your file over to a collection agency, leading to years of inconveniences and possibly a lawsuit, and with no assurance you’ll ever get out of paying the annual dues and fees.
The information in this column is intended to provide a general understanding of the law, not legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipmanpc.com.