FleetBoston Merger Sends Stock Up 23%
on Monday
10/29/2003
Recommended as part of our High-Dividend Blue Chip Portfolio
on August 18 of this year, FleetBoston and Bank of America
announced on Monday that they will merge. FleetBoston's stock
surged 23%, assisting our recommended portfolio in outpacing
the stock market this year. This year the portfolio is up
26.4% versus 12.3% for the S&P 500. Bank of America's
press release concerning the merger follows.
Bank of America and FleetBoston Financial
to Create Nation’s Premier Financial Services Company
10/27/2003
Bank of America Corporation and FleetBoston Financial Corporation
today announced a definitive agreement to merge, creating
the nation’s premier financial services company.
The company will bring unmatched convenience, innovation and
resources to customers and clients throughout the nation and
around the world.
The merger, to be accomplished through a
stock-for-stock transaction, establishes a new Bank of America
that will serve approximately 33 million consumer relationships,
with leading market shares throughout the Northeast, Southeast,
Midwest, Southwest and West regions of the United States.
The company will provide market-leading
products for 2.5 million business clients in the United States
and 34 other countries, backed by the capital power of the
second largest banking company in the world. The new Bank
of America will have $68 billion in shareholders’ equity and
the two companies have generated $10 billion in earnings in
the first nine months of 2003.
Charles K. Gifford, currently chairman and
chief executive officer of FleetBoston, will be chairman of
the board of directors of the merged company from Boston.
Kenneth D. Lewis, currently chairman and chief executive officer
of Bank of America, will be chief executive officer and will
maintain his principal office in the combined company’s headquarters
in Charlotte.
“This merger is about delivering the combined
capabilities of two powerful organizations to our customers,
shareholders and communities,” Lewis said. “Customers will
benefit from the most extensive retail franchise in the nation,
a shared commitment to service excellence, and a full range
of traditional and innovative financial products and services.
Shareholders will benefit from the best retail and wealth
markets in America, unmatched diversity of revenues and resources,
and the most talented management team in the industry. Our
communities will benefit from our shared tradition of public-private
partnership, community development and philanthropic investment.
The full press release can be found on FleetBoston's
web site.
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