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Comerica buys Imperial
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November 1, 2000: 9:10 a.m. ET
$1.3B stock swap to create 4th-largest California bank
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NEW YORK (CNNfn) - Comerica Inc. agreed Wednesday to acquire Imperial Bancorp Wednesday for $1.3 billion in stock, creating the fourth-largest bank in California based on assets.
Detroit-based Comerica Inc. (CMA: Research, Estimates) will swap 0.46 share, or a total of about 21 million shares, for each of Imperial's 44.2 million shares outstanding, valuing Inglewood, Calif.-based Imperial (IMP: Research, Estimates) at $27.74 a share. The purchase price represents a 14 percent premium over Imperial's closing price of $24.31 Tuesday.
Aftewr the closing, Imperial holders will own 12 percent of the combined company.
The deal vaults Comerica Inc., with $41 billion in total assets, to the 19th -largest bank nationally and the fourth-largest in California, both based on assets.
After one-time charges and about $145 million in restructuring charges, the purchase is not excepted to affect earnings per share in 2001. The transaction will add about 5 percent to EPS in 2002. The combination is expected to cut expenses by 20 percent of Imperial's expense base over the next two years.
Imperial will begin operating under the Comerica name in the first quarter of 2001. Imperial Chairman George Graziadio will serve as chairman of Comerica Bank-California, a subsidiary of Comerica Inc.
Imperial shares rose $2.81 Tuesday to close at $24.31 while Comerica closed at $60.31. 
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Comerica
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