Banc One Corp. and PNC Financial Corp. continued their acquisitive was last week in Illinois and Kentucky.
Banc One, based in Columbus, Ohio, announced on Thursday a definitive agreement to acquire privately held Jefferson Bancorp, the parent of Jefferson Bank of Peoria, Ill., for stock worth $28 million.
The deal is expected to close in the third quarter next year.
Pittsburgh-based PNC announced a similar agreement Friday to acquire Sunrise Bank for Savings in Forth Mitchell, Ky. The deal will add about $266 million in assets and seven offices to Central Trust, Northern Kentucky, which is owned by Central Bancorp., PNC's Cincinnati affiliate.
Terms of Deal
The $42 billion-asset PNC agreed to pay 0.59 of its common shares for each share of Sunrise Bancorp, the Kentucky thrift's parent. Based on Thursday's PNC closing price of $42.25, the cost of 993,560 outstanding shares would be $42.8 million.
PNC's agreement to pay $24.93 per Sunrise share represented a 31% premium over its Thursday market close of $19, and a 19% premium over its Friday afternoon price of $21.
PNC's stock was up 87.5 cents by midafternoon Friday to $43.125. If PNC's price rises more than 10% before the expected closing date in mid-1992, the exchange ratio would be reduced.
Past Problems
Recovering from earnings problems in recent years, and with its stock price within $2 of its 52-week high, PNC is firmly on the acquisition trail. It concentrates on filing gaps in its six-state banking network.
The week before last, PNC agreed to buy CCNB Corp. of Camp Hill, Pa., with $1.2 billion in assets and 42 offices, for about $167 million.
In each acquisition agreement, PNC gained an option to purchase up to 19.99% of the target's shares, which could be exercised if a merger is not consummated.
The $46 billion-asset Banc One will add Jefferson Bank to the Illinois business being built around two previously announced acquisitions: Marine Corp. of Springfield and First Illinois Corp. of Evanston, which have combined assets of just under $3 billion.
Banc One agreed to exchange 10 of its shares, up $1.125 Friday afternoon to $48.625, for each one of Jefferson Bancorp.
