PNC Bank gets $7.7 billion and buys National City Corp

PNC Bank gets $7.7 billion and buys National City Corp

PNC Financial Services Group, who have a huge presence in Washington announced today that it is purchasing National City for $5.2 billion in stock, by doing so PNC will create the fifth-largest bank in the country by deposits.
PNC Bank also said that the US Treasury will be injecting $7.7 billion of capital into the bank. This would make PNC the first bank to openly turn to the Government to support the purchase. However other banks this week have pointed towards doing similar and using the Treasury's money to purchase troubled banks.
The deal come after Washington Mutual and Wachovia merged and several other mega-mergers happened over the last couple of months.
PNC will be paying $2.23 per share for National City. On this morning's trade (Fri Oct 24) National City was trading down 25 percent from yesterday's close at $2.07. PNC shares were trading up 2.06 percent at $58.05. $384 million in cash will be paid by PNC to select investors who hold warrants in National City.

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