M&I to consolidate 14 bank charters

Northwestern Financial Review, Aug 19, 2000

Marshall & Ilsley Corp., Milwaukee, will consolidate its 14 Wisconsin bank charters into a single charter, and spin off its data processing operation into a separate company. James B. Wigdale, M&I Corp. chairman, made the announcement on July 13.

"A single charter will enable us to move more quickly in taking advantage of new business opportunities and in developing the new products and services our customers need to compete successfully," Wigdale said. M&I's charter consolidation is expected to begin this fall and continue through the first half of 2001. Wigdale said M&I Corp. offices will continue to have local presidents and boards.

M&I Corp. has filed a registration statement with the Securities and Exchange Commission to make an initial public offering for M&I Data Services. The new company will operate under the name "Metavante," with Joseph L. Delgadillo continuing to serve as its president and CEO. M&I Corp. will continue to own more than 80 percent of the shares after completing the offering. "Being its own publicly held company will give Metavante the ability to compete even more effectively in the marketplace," Wigdale said. M&I Corp. will continue to use Metavante's products and services, and will partner with the company in strategic alliances to serve its customer base.

Costs associated with the IPO and charter consolidation will be $19 million. It is anticipated these costs, along with additional charges of up to $33 million related to asset sales and investment portfolio realignment, will be taken in the third quarter of 2000 and subsequent quarters, as costs are incurred.

M&I Corp, a $25.2 billion company, also has a bank in Phoenix with 13 offices, a bank in Nevada with offices in Illinois and Florida, and trust companies in Wisconsin, Arizona and Florida.