- change ups
Bank Merger Involves 500 Locals
That’s the local fraction of the 5,000 people whom Bank One employs nationally. The bank has 242 branches in Michigan.
Based on core deposits, the stock-for-stock merger would create the second-largest banking franchise in the United States.
The combined enterprise would have assets of $1.1 trillion and some 2,300 branches in its 17-state footprint.
The boards of directors of both companies unanimously approved the deal in which 1.32 shares of J.P. Morgan Chase common stock would be exchanged, on a tax-free basis, for each share of Bank One common stock.
Based on J.P. Morgan Chase’s closing price of $39.22 last Wednesday, the transaction would have a value of approximately $51.77 for each share of Bank One common stock.
The merger remains subject to the approval of the shareholders of both financial institutions, as well as federal and state regulators.
The combined company would be known as J.P. Morgan Chase & Co. and would continue to trade on the NYSE under the symbol JPM.
Corporate headquarters would be in New York.
Retail financial services, including consumer banking, small business banking and consumer lending activities — with the exception of credit cards — would be headquartered in Chicago.
According to the agreement, the combined company would continue to use the Chase and Bank One retail brands in their respective markets “while research is conducted to determine a long-term retail brand strategy.”
The J.P. Morgan brand would continue to be used for the wholesale business.
William B. Harrison, chairman and CEO of J.P Morgan Chase, would serve as chairman and CEO of the merged company, and James Dimon, chairman and CEO of Bank One, would serve as its president and COO.
Plans call for Dimon to succeed Harrison as CEO in 2006, with Harrison maintaining the chairmanship.
Harrison said the merged company would have one of the broadest and deepest product mixes of financial institutions in the global market. He said the transaction would create “a powerful enterprise well positioned to generate significant value for our shareholders, customers and communities.”
Dimon said Bank One’s and Chase’s retail and wholesale businesses and geographies complement each other and that their respective earnings contributions “provide near-perfect balance.”