Once-bankrupt CIT Group, the parent company of operating lessor CIT Aerospace, could be an "enticing takeover target" for some of the largest banks, following its two-year restructuring process, Bloomberg reports.
Aviation financiers Toronto-Dominion Bank and Wells Fargo are cited as possible acquirers as "both flush with deposits and boasting high credit ratings", could be drawn to the commercial lender "as a way to make more money", reports Bloomberg, quoting financial consultants Ely & Co.
The group has been a rumoured takeover target since emerging from bankruptcy in 2010; however, media reports of a possible purchase or merger have stepped up again in recent weeks.
CIT's average $41.6 billion in loans, leases and other assets that pay interest had an average yield of 6.98% in 2012, according to its year-end filing. "That tops 99% of US lenders that have market values exceeding $1 billion," according to Bloomberg.
The commercial lender's debt is rated three levels below investment grade at "Ba3" by Moody's Investors Service and "BB-" by Standard & Poor's.
CIT declined comment.