Bank of New York Mellon Corp. (BK) is revealed to be in plans to offer $700 million in shares at a 1% discount to Thursday's closing price, entering into a forward-sale contract with Goldman Sachs & Co. (GS) in a bid to pay for its $2.31 billion February planned takeover of an investment servicing arm from PNC Financial Services Group (PNC. N).

Bank of New York reveals to be in plans to sell 25.9 million shares at $27 each. The company possesses nearly 1.23 billion shares outstanding.

Under the forward-sale agreement, Goldman or its affiliates will lend shares with the help of underwriters and make them open to public.

The company shares were witnessed to slip 2.6% at $26.58 in recent trading in the broad market downturn. The stock is squeezed 8% in the past year, extending disappointment in the broader market.

The takeover landed Bank of New York as the No. 2 provider in fund accounting, administration and transfer agency and landed it into the No. 3 spot in alternative-fund assets under administration.

Goldman Sachs Group (GS. N) and Citigroup Inc (C. N) are partnered book-running managers for the offering, BNY Mellon posted in the statement.

The company in April announced its first-quarter earnings to have marked a rise 74%, backed by improved fee revenue and gains made by the markets.