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KEYCORP TO ACQUIRE COMMERCIAL BANCORPORATION OF COLORADO

 ALBANY, N.Y., Sept. 13 /PRNewswire/ -- Victor J. Riley, Jr., the chairman, president and chief executive officer of KeyCorp (NYSE: KEY), and Jon P. Coates, the president and chief executive officer of Commercial Bancorporation of Colorado (CBC) (NASDAQ: CBOCA), announced today that a definitive agreement has been entered into for KeyCorp to acquire CBC.
 Headquartered in Denver, CBC is a holding company with ten locations in four Colorado markets: Denver, Colorado Springs, Sterling and Fort Collins. The banks, each of which is known as Century Bank, had $356 million of assets and $316 million of deposits at June 30, 1993. Upon the merger, the Century Banks would be merged with Key Bank of Colorado.
 Terms of the agreement call for the exchange of .746 shares of KeyCorp common stock for each share of CBC common stock. Approximately 2.4 million KeyCorp shares will be issued in the transaction.
 The agreement provides that if the average closing price of KeyCorp common stock is less than $35.00 per share during a specific pricing period prior to the closing and if the decline exceeds the decline of an index of regional bank holding companies fair value by 15 percentage points, CBC can terminate the merger agreement unless KeyCorp increases the exchange ratio.
 CBC has issued options to KeyCorp to acquire up to 19.9 percent of CBC's common stock. The options would be exercisable by KeyCorp only if certain conditions relating to the acquisition of CBC by an entity other than KeyCorp are met.
 Consummation of the transaction is conditioned on, among other things, the approval of CBC's shareholders and approval of all applicable regulatory authorities. No assurance can be given that the transaction will be consummated or, if consummated, concerning the time frame under which it would be completed. However, KeyCorp's management anticipates the closing occurring within the first six months of 1994.
 "CBC is a perfect complement to our existing operations in nearby Colorado markets," commented Riley. Said Coates, "CBC's small business lending expertise and core deposit funding will combine with Key Bank's consumer banking strengths to better serve our customers with an increased array of banking services. We look forward to becoming part of 'America's neighborhood bank'."
 KeyCorp (NYSE: KEY), with assets over $32 billion, is a multi- regional bank holding company headquartered in Albany, N.Y. As "America's neighborhood bank," KeyCorp avoids overcrowded marketplaces, concentrating its resources in smaller communities. KeyCorp focuses its business on consumers and small to medium-sized commercial enterprises.
 -0- 9/13/93
 /CONTACT: Don Kauth, Investor Relations, 518-487-4491, or 518-584-5644, after hours, or Susan Peterson, Media Relations, 518-486-8258, or 518-587-3008, after hours, both of KeyCorp; or Jon P. Coates, President & CEO of Commercial Bancorporation of Colorado, 303-321-1234/
 (KEY CBOCA)


CO: KeyCorp; Commercial Bancorporation of Colorado ST: New York, Colorado IN: FIN SU: TNM

BM -- CL005 -- 1116 09/13/93 08:42 EDT
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Publication:PR Newswire
Date:Sep 13, 1993
Words:478
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