Bank of America to buy MBNA for $35 billion.(DIGEST)(Brief Article)

Powersports Business, July, 2005

Bank of America Corp. plans to acquire MBNA Corp. in a $35 billion cash and stock deal.

MBNA, Wilmington, Del., is one of the largest stand-alone credit card issuers in the world. Bank of America Corp., Charlotte, N.C., is the second-largest bank in the country in terms of assets.

The transaction values MBNA at $27.50 per share. MBNA shareholders will receive 0.5009 of a Bank of America share plus $4.125 in cash for each MBNA share.

MBNA shares were up 27% after the announcement, gaining $5.31 to $26.38 in early trading on the New York Stock Exchange. The company's shares peaked at $28.78 in March 2004.

The planned purchase would make Bank of America a formidable rival to Citigroup Inc. and JPMorgan Chase & Co. in credit cards....