FleetBoston Agrees to Buy Summit for $7 Billion

FleetBoston Financial Corp., the eighth-largest U.S. bank, said late Sunday that it agreed to buy Summit Bancorp for $7 billion in stock, strengthening Fleet’s presence in the lucrative New Jersey market and extending its banking franchise into the Philadelphia region.

Under the deal, which had been rumored in the last week, Summit shareholders will receive 1.02 shares of Fleet for each share of Summit. The deal values Summit at $39.78 per share, a 15.7% premium over Summit’s stock price of $34.38 on Friday.