Keefe Bruyette analyst Sanjay Sakhrani says a report from Bloomberg suggested the New York Attorney General is investigating the Capital One (COF), Discover (DFS) deal and has asked a state court for permission to issue subpoenas as part of an ongoing antitrust probe. The news “could signal a coordinated advocacy deal opposition by parties opposed to the deal,” which could apply pressure to the situation and the stocks, the analyst tells investors in a research note. However, Keefe does not think the New York case “is necessarily a make or break for the deal in order to get regulatory approval” Both Capital One and Discover continue to trade at attractive valuations, contends the firm
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on COF:
- Capital One, Discover deal being probed by New York AG, Bloomberg says
- Capital One, Discover move lower after Bloomberg report of NY AG probe
- New York AG probing Capital One purchase of Discover, Bloomberg says
- Capital One Financial Corp. (COF) Q3 Earnings Cheat Sheet
- Discover price target raised to $161 from $148 at RBC Capital