NU Online News Service, Oct. 27, 2003, 1:43 p.m. EST – Bank of America Corp., Charlotte, N.C., has announced plans to acquire FleetBoston Financial Corp., Boston, for $47 billion in stock, or about $45 per FleetBoston share.
FleetBoston has $196 billion in assets.
Bank of America, which has $738 billion in assets, would make Charles Gifford, the chairman of FleetBoston, chairman of the combined company, but the headquarters of the combined company would be in Charlotte, Bank of America says.
Kenneth Lewis, chairman of Bank of America, would be the chief executive officer of the combined company, and 12 of the board members of the combined company would come from Bank of America. Seven of the board members would come from FleetBoston.
Wealth management, premier banking and some other businesses would be based in Boston, rather than in Charlotte.
The combine company would have $934 billion in assets, according to SNL Financial L.P., Charlottesville, Va. Only Citigroup Inc., New York, which has $1.2 billion in assets, would be bigger, SNL says.
The only bigger U.S. bank deals were the acquisition of the old Bank of America Corp., San Francisco, by the new Bank of America, which was formerly known as NationsBank Corp., in 1998, and the acquisition of Travelers Group Inc., Hartford, by Citigroup that same year, according to SNL.