By agreeing to pay for McDonald & Co. with stock, not cash, KeyCorp is unusual among bank acquirers of securities firms.

The Cleveland banking company last week said it would pay $653 million in stock for McDonald, a brokerage firm also based in Cleveland. Aside from helping McDonald shareholders avoid capital gains taxes, the stock deal is a good indication of how positively the brokerage views its buyer, analysts said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.