In Wreck of a Merger, Bank Fishes for Executives

The collapse of a buyout deal in South Florida is proving beneficial to a third party, BankAtlantic Bancorp of Fort Lauderdale.

Taking advantage of mass flight from smaller Republic Banking Corp., BankAtlantic has hired several of its executives to launch an international banking division.

The division, which will offer banking services to U.S. and foreign businesses active in Latin American markets, will be headed by Peggy Baldwin, former head of Republic National Bank of Miami's international banking division.

Ms. Baldwin will report to Mr. Mario Luis del Valle, BankAtlantic's president for Dade County operations and former Republic executive vice president. Ms. Baldwin formerly reported to Mr. del Valle at Republic.

Mr. del Valle and Ms. Baldwin are two of dozens of former Republic Banking Corp. employees who have left Republic for BankAtlantic in the wake of a failed acquisition deal by Barnett Banks Inc.

In late May, just two weeks after Jacksonville, Fla.-based Barnett announced it intended to acquire Republic, the companies announced that the deal was off. Analysts speculated that the deal may have been terminated because of cultural differences between the regional bank and the Hispanic- oriented Republic.

Alan B. Levan, chairman and chief executive of BankAtlantic, said the former Republic personnel provide the expertise BankAtlantic needs to launch the international division.

"We've gone into many new businesses in the last 10 years, and unless we have the right people in place, we don't go forward," he said.

BankAtlantic's new employees also prepare the $2.8-billion-asset thrift holding company to cater to the Hispanic and international business communities, among which it has not had much of a presence.

"BankAtlantic has long been frustrated because a large chunk of its customers have had needs that they've been unable to fulfill," said Larry Cohn, director of research for Ryan, Beck & Co.

The new international department, which started operations a few weeks ago, offers services such as letters of credit, Export-Import Bank guarantee insurance, trade financing, currency exchange, and wire transfers. The department also hopes to set up correspondent banking services with banks throughout Latin America.

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