(October 4) – “Firstar, the US regional bank, on Wednesday announced plans to acquire US Bancorp in an all-stock deal valued at around $21bn to create the eighth-largest US bank by asset value,” writes Doug Cameron in today’s Financial Times.
“The deal had been the subject of recent market speculation and brings together the banks of Jerry Grundhofer, Firstar’s president and chief executive, and his older brother Jack Grundhofer, who holds the same position at US Bancorp.”
“Firstar, ranked 15th in the US, is offering 1.265 of its own shares for each share in eighth-ranked US Bancorp, a 22 per cent premium on their $23.19 close on Tuesday. Firstar shares closed at $22.25.”
“The enlarged bank would operate under the US Bancorp brand in a deal expected to close in the first quarter of 2001.”
“Milwaukee-based Firstar operates in 11 mid-west states and would expand its franchise west with the purchase of Minneapolis-based US Bancorp, which operates consumer and wholesale banking services in 16 US states in the West and Midwest.”
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