Posted on 06/30/2005 6:25:01 AM PDT by Pyro7480
Bank of America to Buy MBNA in $35B Deal
NEW YORK - Bank of America Corp. said Thursday it will acquire MBNA Corp., one of the world's largest credit-card companies, in a $35 billion cash and stock deal that will result in 6,000 jobs cuts.
The deal is expected to close in the fourth quarter of 2005. Under terms of the agreement, MBNA shareholders will receive 0.5009 common shares of Bank of America plus $4.125 in cash for each of their shares. Based on Bank of America's Wednesday closing stock price, the deal is valued at $27.50 per share, or $35 billion in total.
Bank of America expects the job cuts to help it achieve overall cost savings of $850 million, which would be fully realized in 2007, and anticipates a restructuring charge of $1.25 billion. Additional savings will be achieved through the elimination of overlapping technology, vendor leverage and marketing expense.
After the deal is completed, Bank of America said it will be one of the leading worldwide payments-services companies and issuers of credit, debit and prepaid cards based on total purchase volume.
I wonder how this will affect the economy in my home state of Delaware. MBNA is the largest private employer in the state.
Ping!
The economy of that state will go south hard.
I'm just reading this in the NJ while sitting on hold with a friend up in Dover.
Not really sure how this is going to play out.
Nothing new under the sun. The first bank-issued credit card was the Bank Americard from (duh) the Bank of America. It is now known as Visa.
I have four credit cards which at one time were all distinct entities and now every single one is owned by Citicorp. And I HATE Citicorp as they help fund the gun grabbing Brady bunch.
Years ago I vowed to never ever deal with Citicorp and now I'm stuck and am I pis ticked off. I'm now indirectly helping people I utterly detest.
So I ask, where the heck is an anti-trust law when you need one?
I heard on Fox News that 6K jobs will be cut. They didn't specify where the cuts would be.
Doesn't MBNA have a big operation in Maine? Cheap (or cheaper at least) labor up there!!! Bank of America is getting f-ing huge, now if they can buy up some Chinese banks we'll be all set.....
Economic impace on Delaware?
Ask the people up in New Englad who used to work for Fleet Bank. LOL The giant sucking sound was all the jobs being sucked down to BoA in North Carolina. All they left up north was a bunch of ATM machines, a few people with golden parachutes, and a lot of people out of jobs. It's a lean, mean banking machine.
Does this mean the giant sucking sound from Deleware will go away?
Will the MBNA 500 race at Dover Downs be renamed the BoA 500?
MBNA is a pack of opportunistic jackals. They give capitalism a bad name.
Do they get Joe Biden, too, or does he cost extra? ;)
BWWWWW HAAAAAAAAAAA HAAAAAAAAAAAAA
He's already been bought lock, stock and barrel.
Interesting. MBNA was a spinoff of Maryland National Bank when they were about to go belly up. Eventually, then Nationsbank rescued Maryland National at a fire sale. Hugh McColl, president of Nationsbank coveted BofA and made it happen. So now, MBNA is back in home, so to speak.
After this deal, all my cards will be either BofA or Citicorp. This is nuts.
Don't buy your t-shirts for 2006 Dover races just yet.
Are we going back to the days of the old "BankAmeriCard"?
This merger should not be allowed. I hope it is stopped
Oops! I hadn't read your post when I said almost the same thing...Great minds? I remember those old cartoon TV commercials for BankAmeriCard before they changed it to VISA.
My guess is your guess is pretty close to the mark.
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