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Bank of America Agrees to Acquire
LaSalle Bank
Becomes leading bank in Chicago and Michigan
CHARLOTTE, N.C., April 23 /PRNewswire/ -- Bank of America
Corporation today announced a definitive agreement to purchase
ABN AMRO North America Holding Company, parent of LaSalle
Bank Corporation and its subsidiaries, from ABN AMRO Holding
NV. The combination of LaSalle and Bank of America creates a
leading banking franchise in metropolitan Chicago, the No. 3
banking market in the United States, and in Michigan.
(Logo: http //www,newscom.cojcgi-
binLprnhj20050720/CLW086LOGO-b )
Bank of America will pay $21 billion in cash to ABN AMRO. After a
return of $5 billion in excess capital, the net cost is $16 billion.
The purchase will significantly deepen Bank of America's Chicago
presence and add LaSalle's 17,000 commercial banking clients,
1.4 million retail customers, 411 banking centers and 1,500 ATMs
in the Chicago area, Michigan and Indiana. It also will mark Bank
of America's retail branch entry in Michigan, where it will have
264 offices and be•the largest bank with a 23 percent deposit
market share. LaSalle also has six banking offices in Indiana.
In the last four years, Bank of America has grown its retail
presence in Chicago from a single financial center to 56 locations.
Once combined with LaSalle's 141 Chicago area offices, Bank of
America will have more than 14 percent of the deposit market
share in metropolitan Chicago. LaSalle is a top- 20 U.S. bank
holding company, with $113 billion total assets.
"In LaSalle, we see a compelling opportunity to fill in a key gap in
our national franchise and build relationships with thousands of
new customers in retail, private banking, wealth management
and commercial and corporate banking," said Kenneth D. Lewis,
Bank of America's chairman and chief executive officer. "LaSalle
customers will share in the most extensive retail franchise in the
nation, have access to a leading innovator in financial services
and will benefit from Bank of America's commitment to the
communities it serves."
Commercial and corporate clients will benefit from greater access
to global capital markets and enhanced investment banking and
global treasury services capabilities.
Bank of America will be able to deliver more services including
innovative products such as Keep the Change, Business 24/7 and
$0 Online Equity Trades to complement LaSalle's strong existing
capabilities. As a result, Bank of America expects increased
Sean
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http://newsroom.bankofamerica.com/index.php?s=press_releases&item=7745 6/18/2008
Bank of America I Newsroom - Press Releases Page 2 of 4
revenue from additional sales over time.
"Bank of America is a tremendous organization for which I have
the utmost respect," said LaSalle Bank Corporation President and
Chief Executive Officer Norman R. Bobins. "I look forward to
working with them."
In the Community
In the community, LaSalle has consistently demonstrated its
involvement in the markets it serves. Bank of America also is
committed to Chicago and since 1995 has donated more than $30
million in Illinois, mostly in Chicago, to organizations such as the
United Way, the Chicago Community Foundation and
Neighborhood Housing Services. Bank of America has pledged
$1.5 billion nationally in philanthropic giving over 10 years,
including $200 million in 2006.
In 2006, Bank of America donated $3.9 million in Illinois, a 28
percent increase from a year earlier. Last month, Bank of America
gave $1 million to the Chicago Public Library to fund technology
improvements in library branches and provide assistance to job
seekers and others without Internet access.
Bank of America intends to continue its support of the LaSalle
Bank Chicago Marathon and key sports sponsorships, such as
being the official bank of Major League Baseball's Chicago White
Sox. Bank of America is the official bank of baseball. Bank of
America also looks forward to introducing its philanthropic
programs in Michigan markets.
Bank of America is a leader in community development, with a
national goal of $750 billion over a 10-year period. It is
committed to providing financial products and services in low to
moderate income areas it serves.
Financial Terms and Assumptions
The purchase is expected to be immediately accretive to earnings
per share.
Bank of America expects $800 million in after-tax cost savings in
the transaction. Half of those would come in 2008 and the
remainder would be realized in 2009.
Bank of America would have an estimated $800 million in after-
tax restructuring costs.
The agreement has been approved by Bank of America's board of
directors and ABN AMRO's supervisory board, and is subject to
customary regulatory approvals. The purchase is expected to
comply with all applicable legal and regulatory requirements.
Closing is expected in late 2007 or early 2008.
Bank of America was advised in the transaction by Banc of
America Securities and the law firm of Wachtell, Lipton, Rosen &
Katz. ABN AMR() was advised by UBS and the law firm of Davis
Polk & Wardwell.
Note: Bank of America management will present transaction
details in an 8:30 a.m. Webcast. The presentation and Webcast
can be accessed on the Bank of America's Investor Relations Web
site at http:Jjinvestor.bankofamerica.comJ.
http://newsroom.bankofamerica.com/index.php?s=press_releases&item=7745 6/18/2008