BofA Bolsters Antitrust Plan

BankAmerica Corp., seeking to defuse antitrust concerns stemming from its proposed acquisition of Security Pacific Corp., said Monday that it is willing to divest branches holding about $7 billion in deposits.

The amount is considerably higher than the $4 billion in deposits the San Francisco bank previously said it would sell if federal authorities approve the acquisition of its Los Angeles rival. BankAmerica, parent of Bank of America, said in a statement that the number could be revised even more.

The disclosures, contained in filings with the Federal Reserve Board, come in the wake of criticism that the new bank could have an overpowering share of the market in some areas, particularly in Washington state. BankAmerica said the decision to boost what it is willing to divest comes “in response to questions and comments about market concentrations” from federal and state authorities.

BankAmerica has not specified which branches it plans to sell or the number of branches that will be divested, although the bulk of its potential antitrust problems are known to be in Washington and Arizona. The bank has listed in documents 16 markets in five states where antitrust problems could surface. In California, the areas are Riverside, China Lake, El Centro, San Luis Obispo and Twentynine Palms.

BankAmerica, which hopes to complete the deal this spring, is seeking the Fed’s approval to acquire Security Pacific in a stock swap valued at more than $4 billion. In addition, Justice Department antitrust officials must review the deal.