Northern Trust shares pop as takeover rumors swirl

* Rumors that HSBC may be planning to make a bid

* Northern declines to comment on speculation

* Shares up 4.4 pct

BOSTON, Oct 26 (BestGrowthStock) – Shares of Northern Trust Corp
(NTRS.O: ) jumped 4.4 percent on Tuesday as talk swirled that
HSBC (HSBA.L: ), Europe’s biggest bank, may be planning to make a
bid for the U.S. trust bank and investment manager.

While talk of a possible bid has been heard around trading
rooms for months, analysts said it picked up steam this week
after the British newspaper Daily Mail ran a story under the
headline “HSBC banks on a Northern tie-up.”

The newspaper wrote of rumors that HSBC is lining up a
$65-per-share offer for the company. It cited no sources.

Northern Trust shares were up $2.13 to $50.15 in morning
Nasdaq trade. Other asset managers and trust banks were posting
tiny gains or small losses.

Northern Trust spokesman Doug Holt said the company does
not comment on rumors or speculation.

Only a week ago, Northern Trust reported a 17 percent drop
in third-quarter earnings, lagging behind its far bigger U.S.
rivals State Street Corp (STT.N: ) and Bank of New York Mellon
(BK.N: ).

Northern Trust, like its rivals, has felt the weight of low
interest rates, which have hurt the bank’s normally lucrative
securities lending business.

While Northern Trust’s assets under custody increased 10
percent to $3.9 trillion in the third quarter and assets under
management rose 8 percent to $657.2 billion, the bank remains
smaller than its U.S. rivals, suggesting to some analysts that
a takeover might make sense.

At the same time, some of Northern Trust’s top executives
have said in the past that they are keeping their eyes open to
possibly make an acquisition. Traditionally, the company has
relied on organic growth.
(Reporting by Svea Herbst-Bayliss; editing by John Wallace)

Northern Trust shares pop as takeover rumors swirl