PNC Financial Services buying National City

Filed by Associated Press October 24th, 2008 in BREAKING.
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NEW YORK (AP) — PNC Financial Services says it is acquiring National City for about $5.58 billion and will receive $7.7 billion in capital from the federal government.

PNC will pay $5.2 billion for National City through a stock transaction that values National City at about $2.23 per share, a 18.9 percent discount from Thursday’s closing price of $2.75. The remaining $384 million will be a cash payment to certain warrant holders.

Cleveland-based National City has been hit hard over the past year by the downturn in the mortgage market. Earlier this week, the Cleveland-based bank posted a quarterly loss of $5.15 billion, or $5.86 per share.

PNC says it will also receive a $7.7 billion investment from the government, under its $750 billion bailout plan.

 


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