Charles Sheehan
Canadian Press
Thursday, February 10, 2005
PITTSBURGH (AP) - Salvaging a deal that appeared dead earlier this week, the regional bank PNC Financial Services Group Inc. struck an agreement to pay about $642 million US in cash and stock for Riggs Bank, an old-line Washington institution that ran into legal trouble over suspicious financial transactions.
PNC said Thursday it has agreed to pay $20 per share for Riggs, $4.25 a share less than the price announced last summer before Riggs ran into regulatory trouble. The agreed price was higher than a revised offer of $19.32 per share that Riggs said PNC had subsequently made and Riggs rejected.
The deal, approved by boards at both companies, is expected to be closed "as soon as possible," said Mark Hendrix, Riggs spokesman.
It is subject to regulatory clearance and approval by Riggs shareholders.
Riggs, which once had a near-monopoly on business with the capital's diplomatic community, had sued PNC on Monday after its suitor cut its buyout offer by about 20 per cent after Riggs pleaded guilty to violations of a law to prevent money laundering. Riggs has dropped the suit.
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