PNC Financial buying National City for $5.58B

NEW YORK October 24, 2008, 10:27 am ET · PNC Financial Services Group Inc. said Friday it is acquiring National City Corp. for $5.58 billion in stock and cash and will receive $7.7 billion in capital through the government's recently passed bailout plan.

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.

National City shareholders will receive 0.0392 shares of PNC common stock for each share of National City they own.

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

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I have had my National City account since '86. I wonder how this will affect me? I guess we can say goodbye to those FREE ATM fees they have been touting lately.

- Just the KAT, thinking out loud again.

If man has no tea in him, he is incapable of understanding truth. ~Japanese Proverb

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