Printer Friendly

CHEMICAL AND MANUFACTURERS HANOVER MERGE, CREATING NATION'S SECOND LARGEST BANKING GROUP

 CHEMICAL AND MANUFACTURERS HANOVER MERGE,
 CREATING NATION'S SECOND LARGEST BANKING GROUP
 NEW YORK, Dec. 31 /PRNewswire/ -- Chemical Banking Corporation (NYSE: CHL) and Manufacturers Hanover Corporation (NYSE: MHC) said today that they have completed their merger to form the new Chemical Banking Corporation, the nation's second largest bank holding company, with assets of approximately $140 billion, shareholders' equity of more than $7 billion and major franchises in regional, national and international markets.
 As a result of the merger, each outstanding share of Manufacturers Hanover Corporation common stock was converted into 1.14 shares of Chemical Banking Corporation common stock and each outstanding share of Manufacturers Hanover preferred stock was converted into one share of similar Chemical preferred stock.
 The new Chemical also said that it is confident that the annual expense savings to be realized through the merger will be approximately $750 million by 1995, vs. the previous estimate of $650 million.
 The new estimate reflects additional opportunities for cost savings in occupancy, technology and other corporate-wide expenses, which have been identified during the merger transition process. The new Chemical said that there has been no change in its earlier estimate of staff reductions, which remains at a projected 6,200, either through attrition or layoffs, when the full consolidation is complete.
 The corporation's one-time restructuring charge to cover expenses related to the merger has also been increased. Previously estimated at $550 million, the charge will be $625 million and will be reflected in the fourth quarter 1991 results of the new combined entity.
 In keeping with plans to further strengthen the corporation's capital position and improve its credit standing, the new Chemical plans to raise $1.25 billion in new common stock in January. Giving effect to this equity offering and the restructuring charge, the corporation expects to have a Tier I risk-based capital ratio in excess of 6 percent.
 The new Chemical is now the leading bank to small businesses and mid-sized companies both in downstate New York and in the tri-state region of New York, New Jersey and Connecticut. It has New York's largest retail banking network and nearly 1 million consumer household relationships in the state.
 Nationally, the new Chemical is an industry leader in the number of primary relationships with major U.S. corporations and in providing key operating services such as cash management, corporate and institutional trust, trade services and funds transfer. Chemical operates the country's sixth largest credit card franchise and is a major originator and servicer of home mortgages.
 Internationally, it is among the global leaders in loan syndications, foreign exchange, interest rate and currency swaps and corporate finance, with an extensive international office network in major financial centers.
 The two flagship banks of the new Chemical Banking Corporation, Manufacturers Hanover Trust Company and Chemical Bank, will be merged by June 30, 1992, and will continue to operate as separate banks in the interim. The merger schedule for the two banks was chosen to ensure a continuance of customer service excellence while integrating the banks' operations.
 -0- 12/31/91
 /CONTACT: John Meyers, 212-270-7454, Ken Herz, 212-310-7436, or John Stefans, 212-270-7438; or (investors) John Borden, 212-270-7318, all for Chemical Banking/
 (CHL MHC) CO: Chemical Banking Corp.; Manufacturers Hanover Corp. ST: New York IN: FIN SU: TNM


CK -- NY032 -- 5923 12/31/91 14:45 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 31, 1991
Words:552
Previous Article:MUMMERS PARADE BROADCAST NOW INCLUDES ALL DIVISIONS; LIVE TELECAST TO BEGIN AT 8:30 A.M.
Next Article:GAS PRICE IS LOWER FOR SIXTH CONSECUTIVE WEEK, AAA REPORTS
Topics:


Related Articles
CHEMICAL & MANUFACTURERS HANOVER DESIGNATE SITES FOR OPERATIONS CONSOLIDATION
CHEMICAL BANKING CORP. AND MANUFACTURERS HANOVER CORP. STOCKHOLDERS APPROVE MERGER OF EQUALS
CHEMICAL BANKING FILES REGISTRATION STATEMENT WITH SEC
CHEMICAL BANKING CORPORATION PRELIMINARY CREDIT RATING UPGRADE
CHEMICAL BANKING $4.1 BILLION SENIOR DEBT 'A' BY FITCH AFTER STOCK ISSUE -- FITCH FINANCIAL WIRE --
BANK OF BOSTON NAMES EDWARD A. O'NEAL TO HEAD NEW ENGLAND BANKING
CHEMICAL BANKING NAMES JOSEPH L. SCLAFANI SENIOR VICE PRESIDENT CONTROLLER
CHEMICAL BANK COMPETITIVE GRANT PROGRAM OPEN FOR SUBMISSIONS
UNITED JERSEY BANK GETS MERGER APPROVAL
CHASE AND CHEMICAL MERGE, CREATING LARGEST BANKING COMPANY IN THE UNITED STATES

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters