BANKING & FINANCE - Dec. 13, 1995

Bank of Boston to Acquire BayBanks: Bank of Boston Corp. said it agreed to buy BayBanks Inc. for $2 billion in stock and expects to cut 2,000 jobs in the combined company. Bank of Boston said the boards of both Boston-based institutions approved the acquisition, which calls for each BayBanks share to be exchanged for 2.2 shares of Bank of Boston. BayBanks stockholders will get a premium of 17% over the recent stock price in the tax-free deal. Bank of Boston stock closed down $1.25 at $45.375 on the New York Stock Exchange. BayBanks closed at $85 on Nasdaq, but in after-hours trading following the announcement rose to $93. Bank of Boston said the combination will create a bank with more than $55 billion in assets, $40 billion in deposits and 400 branches.