Banco Bilbao to purchase Compass Bancshares Inc.

0 Comments | Deseret News (Salt Lake City), Feb 17, 2007

BIRMINGHAM, Ala. (AP) -- Compass Bancshares Inc., which operates banks from Arizona to Florida, said Friday that it is being purchased by Spain-based Banco Bilbao Vizcaya Argentaria S.A. in a cash and stock deal valued at about $9.6 billion.

The transaction consists of roughly $4.6 billion in cash and about 196 million shares of Banco Bilbao common stock.

Compass will become a subsidiary of Banco Bilbao, with Banco merging its U.S.-based banking affiliates with Compass.

The boards of both companies have already approved the deal, which is expected to close in the fourth quarter of 2007.

The deal is a 16.3 percent premium over Compass' closing stock price of $61.78 Wednesday on the Nasdaq Stock Market.

Compass shareholders can choose to receive either 2.8 Banco Bilbao American depository shares or $71.82 in cash per Compass share.

After the acquisition is complete, Compass will rank among the top 25 banks in the United States with about $47 billion in total assets, $32 billion in total loans and $33 billion in total deposits.

"BBVA is seeking to become a global and diversified bank, with a focus on high-growth markets," BBVA Chief Executive Jose Ignacio Goirigolzarri said.