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Bank holding companies

ARBOR National Holdings Inc. and BankAmerica Corp. Announce Average Closing Price for BAC Common Stock

Strategic Insights

— 1 min read

ARBOR National Holdings Inc. and BankAmerica Corp. have announced the "Average Closing Price" for BAC Common Stock, a crucial component in the calculation of the share exchange ratio for their pending stock merger. The "Average Closing Price" of $40.40 was determined based on the average closing sales price per share of BAC Common Stock on the New York Stock Exchange over a fixed period preceding the final federal bank regulatory approval of the proposed merger transaction. This approval was obtained earlier this month, paving the way for the merger's completion. The merger agreement stipulates that the preliminary per share merger price of $16.35 per ARBOR share is subject to various adjustments prior to the closing, which will be divided by the "Average Closing Price" to determine the actual exchange ratio applicable to ARBOR shares.

Key Takeaways:

  • The "Average Closing Price" for BAC Common Stock was calculated as $40.40.
  • The "Average Closing Price" is based on the average closing sales price per share of BAC Common Stock on the New York Stock Exchange for a fixed period preceding final federal bank regulatory approval.
  • The preliminary per share merger price for ARBOR shares is $16.35, subject to various adjustments prior to closing.
  • The share exchange ratio will be determined by dividing the preliminary per share merger price by the "Average Closing Price".
  • The merger is scheduled to close on January 31, 1995, subject to shareholder approval and satisfaction of certain closing conditions.

Statistics:

  • Average Closing Price: $40.40
  • Preliminary per share merger price for ARBOR shares: $16.35
  • Fixed period for calculating "Average Closing Price": Not specified
  • Number of days in the fixed period: Not specified
  • Final federal bank regulatory approval date: Currently not specified
  • Number of ARBOR shares eligible for exchange: Unknown
  • Number of BAC shares to be exchanged: Unknown

Sources:

  • Business Wire - January 16, 1995
  • ARBOR National Holdings Inc. Press Release

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