Other questions concern whether the FleetCenter, home of the Boston Bruins and Celtic will be renamed? FleetBoston chair and CEO Charles Gifford says it would be likely that the center's name would be changed to reflect the new corporate identity.
The new company will serve approximately 33 million consumer relationships and maintain offices in Boston and Bank of America's home base in Charlotte, NC. The company will have nearly 10% of the banking deposits in the US and have almost 5,700 retail banking offices, more than 16,500 ATMs. Gifford will serve as chairman of the board of directors of the merged company from Boston. Kenneth D. Lewis, currently chairman and CEO of Bank of America, will be CEO and will maintain his principal office in the combined company's headquarters in Charlotte.
Bank of American spokesperson Eloise Hale says that because the banks operated in different markets---FleetBoston was concentrated mostly in New England--there was not any overlap. In fact, she anticipates that no branches will be closed and that 150 branches will be added over the next year. The new Bank of America will also be a leading lender to small banking businesses in the nation--serving 30% of the businesses operating in its 29-state franchise.
The new board of directors, which will have 19 members, including 12 from Bank of America and seven from FleetBoston, will meet in both Boston and Charlotte. Under terms of the agreement, FleetBoston Financial stockholders will receive .5553 shares of Bank of America common stock for each of their shares. The transaction's value has been established at almost $47 billion, or $45 per FleetBoston Financial share. If it meets with board and regulatory approval, closing is expected in the first half of 2004.
"The opportunity to merge with Fleet is unique," Lewis says. "From the Bank of America perspective, we will have the leading market position in Massachusetts, Rhode Island, Connecticut and New Jersey as well as a powerful retail platform in New York City, upstate New York, New Hampshire and Maine."
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