Banks
Capital One to Buy Chevy Chase Bank
The Associated Press
12/04/08 - 08:05 AM EST
Updated from 12:06 a.m. EST
MCLEAN, Va. -- Capital One Financial (COF Quote) says it will buy Chevy Chase Bank for about $520 million in cash and stock.
Capital One will buy the regional bank using $445 million in cash and 2.56 million Capital One shares valued at $75 million, or about $29.30 a share.
Chevy Chase bank has about $11 billion in deposits, with branches in Maryland, Virginia and Washington, D.C. Capital One has about $98.9 billion deposits.
McLean, Va.-based Capital One says the deal will boost operating earnings in 2009.