Bank of Montreal (BMO) will acquire Marshall & Ilsley Corp.
(MI) in a stock-for-stock deal valued at about US$4.1 billion,
further strengthening the Canadian bank's position in the U.S.
Midwest.
Bank of Montreal said Friday that, under the definitive
agreement, it's offering 0.1257 of a share for each M&I share.
Based on Bank of Montreal's closing stock price in Toronto Thursday
of C$62.05, the deal values M&I at US$7.75 a share.
Earlier this year, Bank of Montreal bought Rockford, Ill.-based
Amcore Bank NA in a Federal Deposit Insurance Corp.-assisted deal
that extended its reach in Illinois and Wisconsin. It also said
earlier this month when it reported fiscal fourth-quarter results
that it would continue making small "tuck-in" acquisitions to build
its business.
Bank of Montreal is Canada's fourth-largest lender. It expects
the M&I acquisition to be accretive to earnings in 2013,
excluding one-time merger and integration costs of about C$540
million.
-By Carolyn King, Dow Jones Newswires; 416-306-2100;
carolyn.m.king@dowjones.com