Banks Merging in $6.3 Billion Deal
NASHVILLE, Tenn. (AP) _ AmSouth Bancorporation is buying First American Corp. for $6.3 billion in stock in a deal that will create a banking concern with operations in nine Southern states from Kentucky to Florida.
The company, which will be called AmSouth Bancorporation, will have $40 billion in assets, 680 branches and 1,350 ATMs.
It will operate in Alabama, Arkansas, Georgia, Florida, Kentucky, Louisiana, Mississippi, Tennessee and Virginia.
The corporate headquarters for the combined companies will be Birmingham, Ala., where AmSouth is currently based.
The merger agreement, unanimously approved by the boards of both companies, gives First American shareholders 1.871 shares of AmSouth common stock for each First American common share.
First American is based in Nashville.
C. Dowd Ritter, AmSouth chairman and chief execueive, said the combination offers ``compelling strategic and financial benefits.″
Ritter will serve as president and chief executive of the combined company.
Dennis C. Bottorff, chairman and chief executive of First American, said the deal is a ``an ideal partnership that brings together both companies’ strong positions in contiguous markets.
Bottorff will be the chairman until Ritter becomes chairman on Jan. 1, 2001.
In addition to Bottorff, four other First American directors will join the AmSouth Board, increasing its size from 12 to 17 members.