By Lisa Kerner
Charlotte, N.C., Jan. 29 - Merrill Lynch entered into a definitive agreement to acquire all of the outstanding common shares of First Republic Bank in a stock and cash transaction valued at $1.8 billion.
First Republic shareholders will receive $55.00 per share, or may elect 50% cash and 50% Merrill Lynch stock, at closing, which is expected to be completed in the third quarter of 2007.
Following the transaction, the San Francisco-based private banking and wealth management firm will operate as a stand-alone brand within Merrill Lynch, retaining its name, current management structure and headquarters.
"We look forward to supporting First Republic's further expansion with additional capital and a greater range of investment products, advice and services," the president of Merrill Lynch's Global Private Client business, Robert J. McCann, said in the release.
Merrill Lynch is a wealth management and capital markets advisory company located in New York.
| Acquirer: | Merrill Lynch
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| Target: | First Republic Bank
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| Payment per share: | $55.00 per share cash, or 50% cash and 50% Merrill Lynch stock
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| Announcement date: | Jan. 29
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| Expected closing: | Third quarter of 2007
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| Stock price for target: | NYSE: FRC; $38.30 on Jan. 26
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| Stock price for acquirer: | NYSE: MER; $94.53 on Jan. 26
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