Tuesday, December 23, 2008
Shareholders for Pittsburgh based PNC Financial Services Group, Inc. and National City Bank out of Cleveland, voted in favor of PNC's purchase of National City for $5.6 billion. PNC is the first bank to take advantage of the government's $700 billion bailout program to make an acquisition. It is buying National City for $2.23 a share-- an amount that has drawn criticism from some Ohio lawmakers as being below market value. The deal also allows PNC to take advantage of $725 million in tax breaks. The merger will make PNC the fifth largest deposit holder in the country and PNC Chairman James Rohr says the bank be will be the number one market-share holder in Pennsylvania, Ohio and Kentucky.