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PNC to buy ailing National City for $5.6 billion

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Eli Weiss

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Nov 28, 2005
Professional Status
Certified Residential Appraiser
State
New York
NEW YORK (Reuters) - PNC Financial Services Group Inc (NYSE:pNC - News) agreed to buy Ohio's National City Corp (NYSE:NCC - News) in a $5.6 billion transaction that would save the ailing Cleveland-based bank.
PNC said the transaction values National City at $2.23 per share -- a value roughly 19 percent below the Thursday closing price of $2.75. Each National City shareholder would receive 0.0392 PNC share for each National City share.

National City has been hit by home loans it held onto after selling its First Franklin Financial Corp subprime mortgage business to Merrill Lynch & Co Inc (NYSE:MER - News) in 2006. Acquisitions of two Florida banks in 2006 and early 2007 also hurt National City.

In April, National City raised $7 billion of capital from private equity firm Corsair Capital and other investors, but that extra capital was not enough to save it. Regulators have been pressuring National City to sell itself for months.

Pittsburgh-based PNC would buy National City with about $5.2 billion of its shares, and $384 million of cash payable to some owners of warrants. PNC plans to sell $7.7 billion of preferred shares and warrants to the U.S. Treasury under the Troubled Assets Relief Program.

National City posted a $729 million quarterly loss earlier this week. In an interview on Tuesday, Chief Executive Peter Raskind told Reuters the economic environment remains tough. "It probably gets worse before it gets better," he said.

PNC expects the transaction to close by the end of 2008. Citigroup, JPMorgan, and Sandler O'Neill advised PNC, while Goldman advised National City.

http://biz.yahoo.com/rb/081024/business_us_nationalcity_pnc.html
 

chicago guy

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Jan 29, 2008
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Certified Residential Appraiser
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Illinois
Anyone know what this means to appraisers or how PNC does business? NAS (National City + First American) is the one decent AMC client that I have that still pays full fee and I am wondering if this is now also going away?
 

Tony in Ohio

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Jan 15, 2002
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Certified Residential Appraiser
State
Ohio
Anyone know what this means to appraisers or how PNC does business? NAS (National City + First American) is the one decent AMC client that I have that still pays full fee and I am wondering if this is now also going away?


I was wondering that too. I only do the occaisional one for them (which I assumed was because I do charge my regular fee), It is local so I will keep an eye and ear open. Hopefully we will get more info soon.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
PNC was my 1st real client back in early '90's.
They were great to work with, and I remember when they spontaneously increased fees at one point.
PNC sold their mortgage business, and as part of the sale, agreed not to re-enter the business, but, here they are buying out a mortgage lender.
Interesting times.
 
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