CHICAGO -- A U.S. subsidiary of Dutch banking giant ABN Amro on Monday agreed to buy the Chicago branch-operations of H.F. Ahmanson & Co. in a deal valued at $130 million.
The $6.2 billion-asset LaSalle Talman Bank, one of several Chicago-based affiliates of ABN Amro North America Inc., said it would buy $1.6 billion of deposits and 26 branches from Home Savings of America, H.F. Ahmanson's principal subsidiary. The price represents an, 8.13% premium on acquired deposits.
The deal marks another milestone in a steady Chicago expansion drive by ABN Amro, which at midyear controlled $22.1 billion of banking and thrift assets in the Windy City.
Buying Spree
Only seven weeks ago, ABN completed the purchase of the $2.7 billion-asset Cragin Financial Corp. Upon completion of the Ahmanson deal, ABN will have more than 100 branches in Chicago.
Charles R. Rinehart, chief executive of Ahmanson and Home Savings, cited a "relatively small" presence and stiff local competition as factors in the decision to sell the Chicago branch operations.
Home Savings, based in Irwindale, Calif., entered Chicago in 1982 through a federally assisted deal, starting from a base of six branches and building an additional 20 sites.
Mr. Rinehart said the $52 billion-asset Home Savings, the nation's largest thrift, would now focus its growth in California, Florida, New York, and Texas.
However, Mr. Rinehart said Home Savings would keep a mortgage lending unit in Chicago.
