Washington Mutual stock fell 12. 7 percent Monday to its lowest level since 1995 on waning prospects for a takeover. Shares of the Seattle...
Washington Mutual stock fell 12.7 percent Monday to its lowest level since 1995 on waning prospects for a takeover.
Shares of the Seattle company, the largest U.S. savings and loan, fell $1.35 to $9.24.
Analysts, including Richard Bove of Punk Ziegel & Co., have said losses on its home loans have made Washington Mutual a takeover target.
But JPMorgan Chase’s $240 million purchase of Bear Stearns removed one of the largest potential buyers from the market.
Most Read Business Stories
- The penthouse atop Smith Tower is on the rental market for the first time
- Washington state ‘literally failed workers,’ and fixing the unemployment system won't be easy
- Downtowns will be back, but Seattle has choices to make
- The wave of COVID-19 bankruptcies has begun
- Boutique cruise line Windstar will move its Seattle headquarters to Miami
“Morgan is out of the picture in terms of more deals until the end of the year at the very earliest,” said Gerard Cassidy, an analyst at RBC Capital Markets.
The price for Bear Stearns — 90 percent less than the firm’s market value last week — also cast doubt on the value of other companies tied to mortgage lending, such as Washington Mutual.
“There could be a lack of many buyers in light of the deteriorating credit quality at WaMu and since potential buyers also have their own internal issues to contend with,” said David Hendler, an analyst with CreditSights.