Legal Scrutiny Threatens Major Banking Merger

Comerica shares are facing downward pressure following the announcement of a legal investigation into its proposed acquisition by Fifth Third Bancorp. The law firm Kahn Swick & Foti has initiated a review focused on whether the multi-billion dollar transaction provides fair value to shareholders, casting uncertainty over the planned consolidation.

The legal probe, announced October 6, 2025, centers on the all-stock transaction valued at $10.9 billion. Under the current terms, Comerica shareholders would receive 1.8663 shares of Fifth Third stock for each share they own. This exchange ratio is now being questioned for its fairness to Comerica investors. The uncertainty has already impacted trading, with Comerica stock declining as much as 0.77 percent to $76.26.

Key Transaction Details:
* Deal Structure: Pure stock swap valued at $10.9 billion
* Exchange Ratio: 1.8663 Fifth Third shares per Comerica share
* Projected Close: First quarter of 2026
* Combined Entity: Would create the ninth-largest U.S. bank with $288 billion in assets

Should investors sell immediately? Or is it worth buying Comerica?

Market Sentiment Shifts as Questions Emerge

Initial market reaction to the merger announcement had been strongly positive, sending Comerica shares soaring approximately 11 percent. However, the mood has shifted with the revelation of the legal review. Market participants are now questioning whether the valuation process was sufficiently transparent and if shareholders are receiving appropriate value for their investment.

Despite the recent decline, Comerica stock continues to trade above both its 50-day moving average of $72.94 and its 200-day moving average of $64.89. These technical support levels may be tested if legal uncertainties persist. While many analysts had previously maintained "hold" ratings on the stock, the current developments may prompt fresh evaluations from market researchers.

The outcome of this legal examination could potentially derail what would otherwise create one of America's largest financial institutions, leaving investors to watch closely as the situation develops.