This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Regions to Acquire AmSouth

Regions Financial (RF - Get Report) agreed to acquire fellow Birmingham, Ala., bank AmSouth (ASO) for $9.8 billion in stock.

The deal, which was first reported late Wednesday by the Wall Street Journal, will unite two midsized southern financial groups and create the 10th largest bank in the U.S., with $140 billion in assets and more than $100 billion in deposits. The combined institution will have a major presence in seven southern states.

Terms of the acquisition call for Regions, with a market capitalization of about $16.2 billion, to exchange $28.33 worth of stock for each AmSouth share. AmSouth closed Wednesday at $28.90; its market capitalization was $10 billion.

AmSouth's CEO, C. Dowd Ritter, will be president and chief executive of the combined company, while Regions CEO and president, Jackson W. Moore, will be its chairman.

The companies expect the merger to result in annual pretax cost savings of $400 million, or 10% of the combined cost base, with about $150 million of that occurring in 2007. Restructuring costs will total $700 million, the banks said.

"These companies complement each other in many ways, and together, led by one of the strongest management teams in the business, we will have an even greater ability to deliver superior service to our customers," the banks said in a statement. "All of that translates to a greater opportunity for increased shareholder value. The appeal of this combination by every measure -- strategically, financially or operationally -- is extraordinary."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RF $7.45 -4.50%
AAPL $94.92 0.96%
FB $99.97 -3.90%
GOOG $686.18 0.38%
TSLA $152.60 -6.20%


Chart of I:DJI
DOW 15,945.48 -81.57 -0.51%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs