UPDATE 2-PNC to sell 61 branches as part of National City buy

martes 7 de abril de 2009 20:19 CEST
 

* PNC to sell 57 branches to First Niagara Financial

* Sale as part of requirement related to National City buy

* FNFG shares up 14 pct, PNC stock down 6 pct (Recasts, adds details from conference call, share movement)

BANGALORE, April 7 (Reuters) - PNC Financial Services Group Inc (PNC.N: Cotización) agreed to sell 61 branches as part of an agreement with regulators related to its acquisition of Cleveland-based National City Corp.

The seventh-largest U.S. bank will sell 57 of its branches and $4.2 billion in deposits to First Niagara Financial Group Inc FNFG.O for a deposit premium of 1.3 percent, or $54 million.

Pittsburgh-based PNC will also sell one branch to Emclaire Financial Corp and three branches to Marquette Savings Bank.

In October 2008, PNC had agreed to buy ailing National City in a government-supported $5.6 billion deal to rescue the large Ohio lender and create the No. 5 U.S. bank by deposits.

Shares of First Niagara, which has $6.2 billion in deposits, were trading up more than 14 percent, while PNC shares were down more than 5 percent in afternoon trade.

In a separate statement, Emlenton, Pennsylvania-based Emclaire said it will assume about $90 million in deposits and will pay a 3.4 percent premium. The deal is expected to add to earnings in the fourth quarter of 2009, the company said.   Continuación...