Fiserv NASDAQ:FISV, a financial technology firm with a debit network business, saw its shares jump 6.1% to $54.94 Tuesday morning in New York, marking the stock's strongest move since February after reports suggested several large US banks had explored a possible transaction.
JPMorgan Chase, Bank of America, Wells Fargo and PNC Financial Services Group, major US lenders, have reportedly held early-stage discussions about acquiring Fiserv's debit network, a deal that could potentially help them seek an exemption from the Durbin amendment, the 2010 Dodd-Frank provision that limited debit-card fees collected from merchants.
Investors may view the report as a possible strategic opening for Fiserv after a difficult stretch, with the stock down 70% through Monday's close and the company facing leadership changes following Mike Lyons's departure and Takis Georgakopoulos's move into the CEO role. However, Mizuho Securities USA analysts led by Dan Dolev appeared cautious, noting that implementation may be difficult because a large bank owning a debit network could face merchant-lobby pushback, antitrust concerns and scrutiny from lawmakers.