Netherlands Bank Buying Standard Federal Bancorp
DETROIT (AP) _ A Dutch-controlled banking company said today it will acquire Standard Federal Bancorp., which owns Michigan’s largest mortgage bank, for about $1.9 billion in cash.
The deal will expand ABN AMRO’s sizeable U.S. bank holdings, while giving Standard Federal access to new products and services that it said would otherwise take it years to develop.
ABN AMRO North America Inc. will buy all outstanding shares of Troy-based Standard Federal bank at $59 each, according to a statement released by Standard Federal.
Trading in Standard Federal shares was halted Thursday on the New York Stock Exchange after the stock hit an all-time high of $58 a share after a week of heavy trading.
The deal is subject to approval by shareholders and regulators, but is expected to close by mid-1997.
ABN AMRO North America is a division of ABN AMRO Bank NV, the largest Dutch banking company with $385 billion in assets, the largest foreign bank in the U.S. and the 14th largest in the world.
Its U.S. holdings include Chicago-based LaSalle National Bank and European American Bank of Uniondale, N.Y.
Troy-based Standard Federal Bancorp. has $15.4 billion in assets. Its principal subsidiary, Standard Federal Bank, is one of the nation’s 10 largest thrifts and the biggest headquartered in the Midwest.
Standard Federal employs about 4,000 people. The company’s statement said there would be no immediate layoffs, although ``some assimilation of staff and back-office operations are expected over time.″
Standard Federal Bank branches will continue to operate under the Standard Federal name after the buyout, the statement said, and operate as a stand-alone federal savings bank.
Scott K. Heitman, president and chief executive of LaSalle Community Bank Group, will assume the additional responsibilities of president and chief executive officer of Standard Federal.
Current chairman, president and chief executive officer Thomas R. Ricketts will remain chairman of Standard Federal Bank and become a LaSalle Bank board member.
``This is an exciting move for Standard Federal,″ Ricketts said in a release. ``With this sale, we’ll have immediate access to a full range of commercial products and services that would otherwise take us years to build.″
Standard Federal has 182 branches in Michigan, Indiana, Ohio and Illinois. ABN AMRO has 1,600 locations in 69 countries.