Home Economy US bank National City taken over by rival PNC

US bank National City taken over by rival PNC

By DPA,

New York : The international finance crisis claimed another US bank Friday, as regional bank National City was taken over by rival PNC Financial Services, in a merger that will create the nation’s fifth largest bank by deposits.

PNC will buy National City, Ohio’s largest bank, for $5.2 billion in stock. The Pittsburgh, Pennsylvania-based bank also said it will receive $7.7 billion under the US Treasury Department’s programme designed to take shares in banks, which will help finance the deal.

PNC chief executive James E. Rohr said in a statement that the government funds had “helped to put this transaction on a very solid footing”.

PNC will pay $2.23 per share for National City.