National City Corp. revised its third-quarter results to include an additional $1.34 billion writeoff tied to its planned acquisition by PNC Financial Services Group Inc.
The troubled Cleveland company, which agreed two weeks ago to sell itself for $5.58 billion in cash and stock, said it decided to test the goodwill on its books, because PNC's offer was less than the seller's book value at the time and about equal to its shrunken market capitalization. As a result, it determined that a writeoff related to its corporate banking business line was appropriate.
Nat City increased its third-quarter net loss to $2.1 billion, or $7.40 a share. On Oct. 21 it had reported a loss of $729 million, or $5.86 a share.