Update: FleetBoston to Purchase Summit in $7 Billion Stock Deal

Updated from 8:15 a.m. EDT

FleetBoston Financial (FBF Quote), the nation's eighth-largest financial holding company, said it had agreed to buy Summit Bancorp (SUB Quote) in a stock deal valued at $7 billion.

Under the terms of the deal, shareholders of Princeton, N.J.-based Summit Bancorp, the leading retail and commercial bank in New Jersey, will receive 1.02 Fleet shares for each Summit share. Based on Friday's closing prices, this values Summit at $39.78 per share, or a 15.7% premium to Summit's market price. However, the deal represents a nearly 40% premium to what Summit was trading at prior to stories of an imminent buyout reached the financial markets last week. ...