tailieunhanh - Vault Career Guide to Investment Banking Part 3

CHAPTER 5 What's the big deal? Recent years have seen the return of the big bank merger. First came the October 2003 announcement that Bank of America would be acquiring FleetBoston for approximately $49 billion. | Trends In I-Banking CHAPTER 5 What s the big deal Recent years have seen the return of the big bank merger. First came the October 2003 announcement that Bank of America would be acquiring FleetBoston for approximately 49 billion. In accepting the offer to merge FleetBoston s chairman and CEO Charles Chad Gifford said that it became increasingly clear to us that scale is a tremendous advantage if properly managed adding that Bank of America was the one bank that was taking advantage of this scale. At the time it looked like the largescale merger would create the second-biggest . banking firm behind Citigroup and JPMorgan Chase. But to the chagrin of BofA a couple of months later in January 2004 JPMorgan Chase announced that it would be acquiring Bank One in a deal worth more than 58 billion solidifying JPMorgan Chase s spot as No. 2 in the . The transaction will also give perennial No. 1 Citigroup a run for its money as the Bank One acquisition created a financial services giant with trillion in assets rivaling Citi s trillion. The Fleet acquisition which is expected to result in 12 500 employees losing jobs closed in April 2004. The Bank One acquisition which could see as many as 10 000 positions lost closed in July 2004. Determined not to be left out of the merger madness Wachovia Corporation the fourth-largest banking firm in the . agreed to pay billion to acquire SouthTrust Corporation in June 2004. The transaction expected to close in the fourth quarter of 2004 would give the Charlotte Wachovia a significantly stronger foothold in the Southeast. Wachovia estimates that 4 300 jobs will be eliminated as result of the acquisition. Killer year for combos As well as working on their own mergers banks had their hands full with other firms combinations in 2003. According to Thomson Financial billion worth of mergers and acquisitions were announced in 2003 a nice 19 percent bump from 2002 figures. And during the 2003 fourth .

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