Plaza Home to Sell Assets, Maybe Slicing Price in Fleet Merger

Plaza Home Mortgage Corp. announced asset sales that may lead to a further reduction of the price it will be paid under a pending merger with Fleet National Bank.

The company has agreements to sell certain assets, primarily loans held for sale, that are required to be sold under the merger agreement. Plaza officials estimated that a downward adjustment of about 5 cents per share, from the previously announced purchase price of $7.625 per share, would result.

However, the final purchase price will not be determined until completion of the asset sales.

Plaza also said the amended and restated merger agreement had eliminated Plaza's obligation to maintain minimum tangible net worth levels before closing.

Additionally, Plaza said that Fleet's application to the Office of the Comptroller of the Currency to merge with Plaza has been accepted for filing, leading it to believe that the merger will likely close this quarter.

In addition to the Plaza acquisition, Fleet Bank's parent, Fleet Financial Group, has made a tender offer of $20 per share for the outstanding shares of Fleet Mortgage Group. Fleet Financial currently owns 81% of Fleet Mortgage.