Providian Rumors

Discussion in 'Credit Talk' started by EdG, Oct 27, 2001.

  1. EdG

    EdG Well-Known Member

    Just thought I would throw out a rumor.

    I was listening to a financial talk radio station yesterday on the ride home. The host said that one of the current rumors going around was that Providian Financial would be bought out next week for $8 -$10 per share. Not too bad considering their stock is around ~$4 a share. Potential suitors include Capital One, MBNA, and Household Financial.

    Anyone else hear this? Thoughts?

  2. leo728

    leo728 Well-Known Member

    don't like of the suitors to much.

    my getsmart card is on the list of "ones to be closed in the near future".
  3. breeze

    breeze Well-Known Member

    I haven' heard anything, but it wouldn't surprise me. I will search through the financial news sites and see what's up.
  4. Bill B

    Bill B Well-Known Member

    I am kinda glad i transfered my 5500 out of my providian account which makes me $6,500 avaible, However Mbna and another one mentioned denied me credit..Will they take my card away? This is also my oldest trade line at 38 months :(
  5. breeze

    breeze Well-Known Member

    Chances are that they would not close your account. It takes a couple of years before their systems are combined - so if PVN is bought, you would only be in their system, not the new company's system. They would never know. Just like people who have a Citibank chargeoff can get an AT&T card, even though AT&T cards are now owned by Citibank. Different systems.

    A buyout/merger and approval takes time, change in control takes time, change in field operations takes time. Converting systems over is usually the last thing done.
  6. supershawn

    supershawn Well-Known Member

    Exactly...this is going to have to go through Regulators, board approvals, stock holder approvals....I would not sweat it for a while.

    The merging of the systems? Can be a nightmare...really depends....As someone involved in that type of situation more than once, I can assure you you have time.....

    Should be interesting.

    Breeze- did you find anything? There is usually a lot of PRV talk on the fool but I really didn't see anything regarding a buyout- not recently anyway.

    What Financial Show was this? Do they have a site with transcripts or a forum?

  7. marci

    marci Well-Known Member

    On the Motley Fool PVN (Providian stock) discussion board, someone said that Citigroup was seriously looking into buying these accounts. The post was aroung October 22cd, or so...
  8. PsychDoc

    PsychDoc Well-Known Member

    Bill, the probable answer is: Relax, you'll get to keep your card, and your credit files will reflect the age of the tradeline.

    Years ago I had a Manufacturer's Hanover Gold VISA. When Chase Manhattan Bank bought out Manufacturer's Hanover, my old MannyHanny card became a Chase Gold card. My tradelines reflected the real age of the card rather than the date one bank bought out the other.

    Hope my little tidbit of experience helps to allay a few fears. Even so, your questions are entirely reasonable -- had I not had the experience with MH and Chase, I'd be wondering the same thing.

  9. ble103

    ble103 Well-Known Member

    Well let's say this is not a rumer after all providian went to hell financially didn't they?Who i think would buy them out?Household Bank is the most likely one to buy them out because of the high risk associated with their credit card receivables.I can't imagine MBNA,citibank,or any other good prime creditors buying them out.I could be wrong but chances are pretty slim that i am wrong.I used to have a prime option credit card about 4 years ago,and they sold out to household bank.I was glad that i have closed the account before household took over because i have had heard many bad things about housebank but really don't know if all of it is true.Providian used to be a decent bank but i guess greed has really gotton a hold of them causing this possible sell-off of their credit card receivables.In my books it dosn't pay to be greedy.
  10. Bill B

    Bill B Well-Known Member

    good to know thanx
  11. breeze

    breeze Well-Known Member

    It must be a rumor - I haven't found anything in news. Don't believe everything you hear. They are ripe for it, but you will hear a lot more rumors before it actually happens.

    As far as Citibank not wanting them, they can sell of their bad accounts to one company and then actually sell out to another company.

    Don't look for rumors look for news that another company has asked to actually see their financial information. That will be a company considering making an offer.
  12. GEORGE

    GEORGE Well-Known Member

    I just want to know if they are having a FIRE SALE...
    0.00% even though it is only 3 months for GETSMART PLATINUM, it has a reasonable "GO-TO" rate 9.99%.

  13. DaveLV

    DaveLV Well-Known Member

    I took a shot at a buyout and bought quite a bit of Providian stock at $3.65 last week. I'd be thrilled to see a buyout at $8-$10 a share.
  14. breeze

    breeze Well-Known Member

    Nowhere to go but up!!
  15. Jeff

    Jeff Guest

    Be careful.
  16. breeze

    breeze Well-Known Member

    You think the state is going to take control?
  17. Jeff

    Jeff Guest

    I don't have a good feel for what is going to happen yet. ??? These things generally take some time to shake out.

    The technical indicators for the stock remain terrible. They have been for quite some time. My positions in PVN have been short just based on the technicals for a couple of months. I will need some more indication of buyers in the stock before I am long.
  18. breeze

    breeze Well-Known Member

    Nothing but rumors that I can see. But I do keep hearing rumors ;)
  19. Jeff

    Jeff Guest

    Yep. ;)
  20. breeze

    breeze Well-Known Member

    I thought maybe your rumors were better than mine. :)

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