Banc One to Affiliate With American Fletcher
COLUMBUS, Ohio (AP) _ Banc One Corp. on Wednesday announced it would merge with American Fletcher Corp. of Indianapolis in a stock exchange agreement which will create a bank holding company with assets of about $15 billion.
The agreement provides for an exchange of Banc One common stock with a total market value of $597.3 million. The exchange ratio may be increased or decreased by 10 percent to allow American Fletcher stockholders to exchange each of their shares for Banc One common stock valued at $60.
American Fletcher, which will become Banc One, Indiana Corp., granted Banc One the option to buy up to 2.37 million shares of its common stock.
Six Indiana banks are members or pending affiliates of American Fletcher and six others have agreed to affiliate with Banc One, Indiana, according to a statement by Banc One.
Columbus-based Banc One, which has 22 Ohio affiliates and $10.8 billion in assets, has been entering the interstate banking market aggressively in the past year. The bank holding company has merger agreements with one other bank in Kentucky and three in Michigan, pending regulatory approval.
Ohio, Indiana, Kentucky and Michigan have reciprocal interstate banking agreements, meaning that a bank from one state may merge with a bank in any other state which also allows out-of-state mergers.
Banc One President John McCoy will become chairman and chief executive officer of the company and American Fletcher Chairman Frank McKinney will become Banc One president and chairman of Banc One, Indiana.