Bank of America Corp. (DE) (BAC) to Buy ABN's La Salle Bank
Bank of America Corp. agreed to pay $21 billion in cash to buy ABN Amro North America Holding Co., the parent company of LaSalle Bank Corp., a Chicago-based bank with a regional lending office in Tampa.
The acquisition was announced about the same time ABN Amro Holding NV, based in The Netherlands, agreed to be bought by Barclays Plc of the United Kingdom for about $91 billion.
The deal would bolster the presence in Chicago of Charlotte, N.C.-based Bank of America (NYSE: BAC - News), filling a key gap in its national franchise, Ken Lewis, Bank of America's chairman and chief executive, said in a release.
LaSalle's commercial and corporate clients will benefit from greater access to global capital markets and enhanced investment banking and global treasury services capabilities, according to the release.
After a return of $5 billion in excess capital, the net cost to Bank of America would be $16 billion, the release said. The purchase is expected to be immediately accretive to earnings per share. Bank of America expects $800 million in after-tax cost savings in the transaction, half of that in 2008 and the rest in 2009. Bank of America would have an estimated $800 million in after-tax restructuring costs.
Bank of America is the largest bank in the Tampa Bay area with 172 offices, $15.3 billion in deposits and a 22.7 percent market share as of June 30, according to the most recent figures available from the Federal Deposit Insurance Corp.
Published April 23, 2007 by the Tampa Bay Business Journal
The acquisition was announced about the same time ABN Amro Holding NV, based in The Netherlands, agreed to be bought by Barclays Plc of the United Kingdom for about $91 billion.
The deal would bolster the presence in Chicago of Charlotte, N.C.-based Bank of America (NYSE: BAC - News), filling a key gap in its national franchise, Ken Lewis, Bank of America's chairman and chief executive, said in a release.
LaSalle's commercial and corporate clients will benefit from greater access to global capital markets and enhanced investment banking and global treasury services capabilities, according to the release.
After a return of $5 billion in excess capital, the net cost to Bank of America would be $16 billion, the release said. The purchase is expected to be immediately accretive to earnings per share. Bank of America expects $800 million in after-tax cost savings in the transaction, half of that in 2008 and the rest in 2009. Bank of America would have an estimated $800 million in after-tax restructuring costs.
Bank of America is the largest bank in the Tampa Bay area with 172 offices, $15.3 billion in deposits and a 22.7 percent market share as of June 30, according to the most recent figures available from the Federal Deposit Insurance Corp.
Published April 23, 2007 by the Tampa Bay Business Journal
Labels: BAC, Bank of America Corp.
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