Stocks quoted in this article:
FleetBoston Financial (FBF – 38) became the eighth-largest American bank after the marriage of the two largest banks in New England. The firm presently operates around 1,250 northeastern U.S. locations, and this number is poised to grow. Today, it was announced that FBF is in discussions to acquire Summit Bancorp (SUB – 33-5/8), which runs over 500 locations in Pennsylvania, New Jersey, and Connecticut.
Terms have not been disclosed, but SUB presently has a market cap of 4.5 billion. Reports stated that SUB may also be in talks with other suitors, so this potential deal with FBF is far from finalized.
FBF is trading slightly lower today, while SUB has surged just under 10 percent. Yesterday, SUB shares added just over 10 percent to their value.