MINNEAPOLIS -- America's ninth largest banking company will be formed with Firstar Corp.'s $21 billion stock purchase of U.S. Bancorp, Fox Market Wire reported.
The combined company, created by the deal announced Oct. 4, will operate under the U.S. Bancorp name and be based in Minneapolis, U.S. Bancorp's current home. Firstar is headquartered in Milwaukee.
The new company will have assets in excess of $160 billion and conduct business in 24 states from the West to the Midwest.
According to Fox Market Wire, the boards of both companies have approved the Firstar/U.S. Bancorp deal. It is expected to be completed by the first quarter of 2001 pending regulatory and shareholder approval.
Terms of the deal require Firstar to exchange 1.265 of its shares for each share of U.S. Bancorp. Based on Firstar's closing price on Oct. 3, $22.25 a share, the deal would be worth $28.15 for each U.S. Bancorp share, 21 percent more than $23.19 U.S. Bancorp's closing price that same day.
Figures by Fox News Wire show Firstar with $74 billion in assets, close to 2,200 ATMS and 1,200 banks nationwide. U.S. Bancorp has $86 billion in assets and 1,000 banks in the West and Midwest.
Jerry Grundhofer will continue as president and chief executive of Firstar while his brother, U.S. Bancorp Chairman, President and Chief Executive John Grundhofer, will remain chairman until his retirement Dec. 31, 2002, Fox reported.
The Firstar/U.S. Bancorp deal is the largest in the financial services industry since September's $35 billion Chase Manhattan/J.P. Morgan merger.
