SAN FRANCISCO -- BankAmerica Corp. said it has calculated the exchange ratio for its pending merger Continental Bank Corp., based on the average closing New York Stock Exchange prices for the 10 trading days that ended last Friday.
Each share of Continental common stock will be exchanged for either 0.7993 share of BankAmerica common or $38.2970 in cash. According to preliminary returns to the exchange agent, holders of 21.9 million of Continental's 51.8 million shares had elected payment in cash, holders of 27.8 million shares had elected stock, and holders of 0.5 million shares gave no preference.
That represents an over-election of cash; therefore, some of those who wanted BankAmerica stock will be selected at random to receive cash. BankAmerica intends to issue 21.5 million shares in the transaction, worth about $1.02 billion.