Shares of Bank of America fell 10%, or $8.08, to $73.79 on news that it would buy Fleet for about $45 a share. That's a 42% premium over Fleet's share price at the close of trade on Friday.
Full Answer
How much did Bank of America pay for fleet?
Bank of America, based in Charlotte, N.C., will pay $45 a share for Fleet, or about $13 more than FleetBoston's closing price on Friday. In trading Monday on the New York Stock Exchange, FleetBoston shares climbed to $39.20, while Bank of America shares fell to $73.57, down $8.29, or 10 percent.
How much will bank of America's acquisition of FleetBoston stock raise shares?
Shares of the regional bank surged 24%, or $7.80, to $39.59 on the news. Under terms of the agreement, FleetBoston stockholders will receive 0.5553 Bank of America common shares for each share held, valuing FleetBoston shares at about $45 based on the Oct. 22 close.
Is Bank of America and fleet the same bank?
Bank of America, Fleet merger completed. The $47 billion merger of Bank of America Corp. with FleetBoston Financial Corp. was on Thursday, making Charlotte, N.C.-based BofA the world's second largest bank. The merger forms a bank with $96.5 billion in equity and $166 billion in market capitalization, according to BofA.
Will the fleetbostonundefined deal hurt bank of America's earnings?
Bank of America pares some earnings estimates for next year. Bank of America's ( BAC) - Get Bank of America Corp Report $47 billion agreement to acquire FleetBostonundefined will cost it some earnings next year, but executives defended the richly valued deal as a good bet for the companies' shareholders and customers.
When did Bank of America buy out Fleet bank?
2004FleetBoston Financial was a Boston, Massachusetts-based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were converted to Bank of America.
What was Fleet bank before?
The Norstar Story Fleet wanted Norstar's profitable New York State network. The two powerful financial institutions finally merged in 1988, becoming Fleet/Norstar. Fleet, with a strong foothold in New York State, could expand into the lucrative New York City market, a key goal of the bank.
What is Fleet bank called now?
The $47 billion merger of Bank of America Corp. with FleetBoston Financial Corp. was on Thursday, making Charlotte, N.C.-based BofA the world's second largest bank.
Who bought Fleet National bank?
FleetBoston Financial GroupFleet National Bank was acquired by FleetBoston Financial Group on Jan 13, 2005 .
Who bought FleetBoston?
Bank of America Corp. announced an agreement Monday to buy FleetBoston Financial Corp., a deal initially valued at $47 billion that would swallow up the last of the big Boston banks that made the city a financial center from the earliest days of the Republic.
Who acquired Fleet Real Estate Funding Corp?
Washington Mutual, Inc.BOSTON -- Fleet Mortgage Corp., a unit of FleetBoston Financial Corp. has been acquired by Washington Mutual, Inc. of Seattle. As a result, Washington Mutual becomes the nation's largest mortgage lender, Business Wire reported.
What did Shawmut bank become?
That expansion culminated in Shawmut Corporation's 1988 merger with Hartford National Corporation, with its own historical narrative dating back to the founding of the Hartford National Bank in 1792--the fifth bank to be chartered in the United States.
When did Bank of America buy Bank of Boston?
2004It was renamed the Bank of Boston, N.A., in 1982 and became BankBoston Corporation in 1997. After the company was acquired in 1999 by another leading New England banking firm, Fleet Financial Group, the newly formed company, FleetBoston Financial, was acquired by Bank of America in 2004.
How much money does Bank of America have?
Alone, Bank of America has $737 billion in assets. It is third behind Citigroup, which has more than $1 trillion, and J.P. Morgan Chase & Co., with more than $740 billion, according to the trade publication American Banker.
What was the first federally chartered bank in the United States?
In 1784, Fleet, then known as the Massachusetts Bank, became the first federally chartered bank in the United States.
Who bought John Hancock Financial Services?
The deal comes less than a month after another Boston institution, John Hancock Financial Services, was bought by Canada's Manulife Financial Corp. FleetBoston and Bank of America executives said that because the companies had so little overlap, they expect the number of jobs in the Boston area to remain about the same.
How many branches does Bank of America have?
The combined company will have the largest retail banking network in the nation, with 5,700 branches across 29 states. The deal gives the bank a foothold it has never had in the No. 1 market, New York, as well as market leadership in Massachusetts, Rhode Island, Connecticut and New Jersey.
When did Bank of America merge with NationsBank?
Bank of America was itself formed by a $60 billion merger with NationsBank in 1998. After the deal Bank of America will remain No. 2 behind Citigroup in terms of assets, but is likely to vault ahead of it in deposits.
Where is Bank of America headquarters?
Bank of America Chairman Kenneth D. Lewis will be CEO. The combined headquarters will remain in Bank of America's current home, Charlotte, N.C. "If you want to be in Boston, southern New England and New York, there is no other single road to that destination," Lewis said on a conference call Monday. He said the bank is creating a "fortress ...
Does the Bank of America merger fill a hole?
Industry analysts said the deal does indeed fill a hole for Bank of America and that more bank mergers are likely after this deal. "The Northeast United States was the biggest hole in Bank of America's footprint, and this fills it," Wayne Bopp, an analyst at Fifth Third Investment Advisors in Cincinnati, told Reuters.
How much did the Bank of America merger cost?
The $47 billion merger of Bank of America Corp. with FleetBoston Financial Corp. was on Thursday, making Charlotte, N.C.-based BofA the world's second largest bank. The merger forms a bank with $96.5 billion in equity and $166 billion in market capitalization, according to BofA.
How many branches does BofA have?
BofA has 5,700 branches in 29 states. Analysts have predicted the merger will result in the loss 9,000 to 11,000 jobs. The $47 billion merger of Bank of America Corp. with FleetBoston Financial Corp. was on Thursday, making Charlotte, N.C.-based BofA the world's second largest bank.
What is the largest bank in Silicon Valley?
Bank of America, which was founded in San Francisco, is the largest bank in Silicon Valley with 19.88 percent of the market, according to the January Business Journal Book of Lists Addendum.
Is BofA still listed?
BofA shares will continue to be listed under the ticker symbol BAC. Fleet's signs will begin to change to Bank of America's name during the third quarter; the change is set to be complete by early next year. BofA has 5,700 branches in 29 states.
How many banks did Fleet acquire?
Its first acquisition outside Rhode Island was First Connecticut Bancorp in 1985, and Fleet acquired 40 banks during the 1980s. The decade was a difficult one for many financial institutions.
What is the Fleet Bank expansion strategy?
Bank expansion strategy was designed to create a network reaching from Maine to Florida and west to the Mississippi. Fleet focused on a number of New England competitors, including Shawmut, the Bank of New England and Bank of Boston.
What is Fleet Bank?
Fleet Bank History. The Providence Bank of Rhode Island, founded 1791, was the fifth bank established in the United States. The bank grew and prospered along with the new nation. Providence purchased Merchants National Bank of Rhode Island in 1926 and adopted the Merchant name. The bank forged ahead with a series of mergers ultimately building one ...
When did Fleet Bank merge with Shawmut Bank?
Fleet merged with a New England rival, Shawmut Bank, in 1995 , catapulting the bank into the number one position in New England and number nine in the United States. Fleet purchased the Quick and Reilly discount brokerage and its online subsidiary, Suretrade, in 1998. The bank continued to scrutinize another New England rival, the Bank of Boston.
What happened to the Bank of New England in the 1980s?
The Bank of New England suffered major financial problems during the 1980s and was put up for sale. Fleet, with the help of KKR, successfully bid for the bank. KKR became the bank’s largest shareholder.
How did Fleet Bank circumvent the banking regulations?
Fleet circumvented these restrictions by becoming a holding company, expanding its financial businesses and buying companies.
How many people did Summit Bank employ?
The bank employed 50,000 people, serviced over 20 million customers and recorded $12 billion in yearly revenues. The company moved its corporate headquarters to Boston and continued its buying spree, acquiring Summit Bancorp, the company’s first New Jersey bank, in 2000.
Mergers chart
This 2012 chart shows some of the mergers noted above. Solid arrows point from the acquiring bank to the acquired one. The lines are labeled with the year of the deal and color-coded from blue (older) to red (newer). Dotted arrows point to the final merged entity.
Citations
Stephen A. Rhoades, "Bank Mergers and Industrywide Structure, 1980–1994," Washington: Board of Governors of the Federal Reanuary 1996. ( Staff study 169)
