M and A
BMO Financial To Takeover M&I
BMO Financial Group is acquiring Marshall & Ilsley.
Marshall & Ilsley has been experiencing losses following the 2008
global crisis, posting a net loss of $483.5 million in the first
nine months of 2010 on top of a recorded loss of $599.3 million
in the same period in 2009.
Under the terms of the deal, the parent firm of the Bank of
Montreal and Harris Bank in Chicago, will acquire all outstanding
shares of common stock in the troubled firm in a stock-for-stock
transaction. Each outstanding share of M&I will be exchanged
for 0.1257 shares of BMO, valuing each share of M&I stock at
$7.75, or about $4.1 billion in BMO common shares. The acquired
firm's Troubled Asset Relief Program preferred shares are also
included in the deal, with full repayment to the US Treasury
immediately prior to closing.
"The acquisition is consistent with our strategy to strengthen
our North American businesses. It transforms BMO's position in
the US Midwest by bringing together highly complementary
businesses that align well with BMO's retail, commercial, and
asset and wealth management businesses in the country,"Bill
Downe, president and chief executive of BMO, said in a
statement.
Upon closing, expected by 31 July 2011, current chairman,
president and CEO of M&IMark
Furlong will become CEO of the combined US personal and
commercial banking business, based in Chicago. He reports to
Downe and will join BMO's Management Committee.Ellen
Costello will become CEO of Harris Financial Corp and US
country head for BMO, with governance oversight for all US
operations. She also reports to Downe.
