By Lisa Kerner
Charlotte, N.C., May 1 - National City Corp. entered into a definitive agreement to acquire MAF Bancorp Inc. for $56 per share, subject to certain adjustments, payable in National City common stock in a tax-free exchange.
The transaction is valued at about $1.9 billion and is expected to close in the fourth quarter of 2007, according to an 8-K filing with the Securities and Exchange Commission.
A $57.6 million termination fee is included in the agreement.
The completed transaction will give National City 126 branches in the Chicago market and deposits of more than $10 billion. MidAmerica Bank customers will have access to a more extensive banking network, including more than 1,400 branches in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania.
"The acquisition of MidAmerica Bank aligns perfectly with the strategy we have articulated over the last several years," National City chairman and chief executive officer David A. Daberko said in a company news release included in the SEC filing.
"It accelerates our expansion in the attractive growth market of Chicago and provides us the opportunity to serve customers in Milwaukee for the first time."
National City is a financial holding company based in Cleveland.
MAF Bancorp is the parent company of MidAmerica Bank, a federally chartered stock savings bank based in Clarendon Hills, Ill.
| Acquirer: | National City Corp.
|
| Target: | MAF Bancorp Inc.
|
| Transaction total: | $1.9 billion
|
| Price per share: | $56
|
| Termination fee: | $57.6 million
|
| Announcement date: | May 1
|
| Expected closing: | Fourth quarter of 2007
|
| Stock price for target: | Nasdaq: MAFB; $40.15 on April 30
|
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