Bank of New York's (BK Quote) shares were lower after the company reached a deal to trade its retail banking business for J.P. Morgan Chase's (JPM Quote) corporate trust unit and $150 million in cash.
Bank of New York will sell its retail and regional middle-market businesses to J.P. Morgan for $3.1 billion with a premium of $2.3 billion, while J.P. Morgan will sell its corporate trust business to Bank of New York for $2.8 billion with a premium of $2.15 billion. The difference in premiums results in a net cash payment of $150 million to Bank of New York. There is also a contingent payment of up to $50 million to Bank of New York tied to customer retention.
Shares of Bank of New York were down $1.45, or 3.9%, to $35.38. J.P. Morgan was adding 49 cents, or 1.2%, to $42.19. ...
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