Printer Friendly

BANC ONE AND PREMIER BANCORP REASSESS PURCHASE OPTIONS

 BANC ONE AND PREMIER BANCORP REASSESS PURCHASE OPTIONS
 COLUMBUS, Ohio, Dec. 26 /PRNewswire/ -- Banc One Corporation


(NYSE: ONE) and Premier Bancorp in Baton Rouge, La. (NASDAQ: PRBC) announced today that the Federal Reserve Board in Washington, D.C. did not approve Banc One's application as filed or as originally discussed with the board a year ago, to have an option to acquire and to make a $65 million investment in Premier Bancorp in Baton Rouge, La.
 Although the Federal Reserve approved the application, they included the additional requirement that Banc One serve as a source of financial strength for Premier beyond the initial $65 million investment even though Banc One did not control or have equity ownership in Premier. The proposed transaction as originally submitted to the Federal Reserve staff in December 1990 was structured so that it would provide additional capital to Premier Bancorp, limit Banc One's exposure to the amount of the original investment, provide Banc One with the option to acquire Premier in the fourth and fifth year following the investment, and to continue to allow Premier to manage its own operations.
 John B. McCoy, chairman and chief executive officer of Banc One, indicated, "It is unreasonable to assume that our shareholders would take on the risks associated with any $4 billion financial institution without having actual management control. It is extremely unfortunate that the Federal Reserve has taken this position. It means that healthy financial institutions will not have the opportunity to assist banks who may be experiencing problems but are expected to recover over time."
 McCoy continued, "Premier is a sound and stable company that is in the process of recovering from the effects of the economic downturn experienced by Louisiana in the recent past. This investment would have given Premier the ability to become a more vibrant competitor in Louisiana much quicker than it can on its own."
 Banc One and Premier are committed to find a way to accomplish the objective of the original structure, and will now explore all possible options that would result in the consummation of an agreement to provide additional capital to Premier in a manner that would be in the best interests of the sharehokders of both companies. In the interim the parties expect to extend their agreements beyond year-end to March 31, 1992 in order to provide adequate time to have further discussions with the Federal Reserve and to consider options to accomplish the original objectives.
 Premier Bancorp has assets of $3.9 billion and serves most markets in Louisiana with 100 banking offices and also operates additional corporations that engage in discount brokerage, leasing, venture capital, investment management and mortgage banking. Banc One Corporation has assets of $46.2 billion including Bank One, Texas and total equity of $3.4 billion. Banc One operates 50 banks with 823 offices in Indiana, Illinois, Kentucky, Michigan, Ohio, Texas and Wisconsin. Banc One Corporation also operates several additional corporations that engage in data processing, venture capital, merchant banking, trust, investment management, brokerage, equipment leasing, mortgage banking, consumer finance and insurance.
 -0- 12/26/91
 /CONTACT: George R.L. Meiling, 614-248-5908, or John A. Russell, 614-248-5989, both of Banc One/
 (ONE) CO: Banc One Corporation ST: Ohio IN: FIN SU:


KK -- CL003 -- 5286 12/26/91 12:11 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 26, 1991
Words:549
Previous Article:GENERAL MOTORS ACCEPTANCE CORP. SENIOR DEBT RATED 'A-' COMMERCIAL PAPER RATED DUFF 1
Next Article:FIRST UNION CORPORATION $172.5 MILLION PREFERRED STOCK SHELF REGISTRATION RATED 'BBB+'
Topics:


Related Articles
FIRST SECURITY TO AFFILIATE WITH BANC ONE CORPORATION
BANC ONE ANNOUNCES AFFILIATION OF KEY CENTURION AND FIRST COMMUNITY
BANC ONE DECLARES A 10 PERCENT STOCK AND CASH DIVIDEND INCREASE, AND REPURCHASE OF UP TO 10 MILLION COMMON SHARES
BANC ONE TO COMPLETE AFFILIATION OF LIBERTY NATIONAL
Coastal Bancorp, Inc. Signs a Definitive Agreement to Purchase Wells Fargo Bank Branch in Port Arthur
Public Offering for BankAtlantic Bancorp
Coastal Bancorp, Inc. to Purchase the Valley Branches of Pacific Southwest Bank
Terrance Dolan Joins U.S. Bancorp as Controller.
BankAtlantic Bancorp Declares 15% Stock Dividend.
Republic Bancorp Management Purchases $1.3 Million in Common Stock.

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