BANKING & FINANCE - Aug. 23, 1994
Continental Bank Holders to Get ‘Bonus’: BankAmerica Corp., which agreed to buy Chicago-based Continental Bank Corp. in January for about $1.9 billion in stock and cash, said each share of Continental will be exchanged for either 0.7993 share of BofA stock or $38.297 in cash. The formula used to determine the exchange rates was spelled out in the original purchase agreement and reflected the average closing price for BofA’s shares in the 10 trading days that ended Aug. 19. The conversion rates translate into a modest bonus for Continental’s shareholders, because the value of BofA’s stock has risen slightly since the deal was announced and thus increased the value of the transaction to about $1.98 billion.
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