Exhibit 99.3
BOSTON, Oct. 2 /PRNewswire/ -- FleetBoston Financial Corporation (NYSE: FBF)
today announced that it has signed a definitive merger agreement to acquire
Summit Bancorp (NYSE: SUB), the leading retail and commercial bank in New
Jersey. The transaction, which is valued at $7.0 billion, solidifies Fleet's
presence in the New Jersey and metropolitan New York markets, and is a logical
extension of Fleet's geographic franchise across the Northeast.
Under the terms of the agreement, Summit shareholders will receive 1.02 shares
of Fleet for each share of Summit they own in a fixed stock exchange. Based on
the closing price of Fleet's stock on Friday, September 29, the transaction
values Summit at $39.78 per share (or in the aggregate at $7.0 billion). The
price per share represents a 15.7% premium over Summit's stock price as of
September 29. The transaction, which is expected to be tax-free to Summit
shareholders, will be accounted for on a pooling basis and has been approved by
the Boards of Directors of both companies. The transaction is expected to close
before March 31, 2001 and is subject to approval by Summit shareholders as well
as customary regulatory approvals.
Terrence Murray, Chairman and Chief Executive Officer of Fleet, said, "Summit
has a formidable presence in the attractive New Jersey market. This transaction
is an excellent geographic fit with our existing franchises, making Fleet the
number one bank in New Jersey and, for the first time, extending our banking
franchise into the Philadelphia region. In addition, it furthers Fleet's
strategic goals of balanced earnings and leveraging our product and services
capabilities over an expanded customer base, as we extend our range of
sophisticated offerings to Summit's one million households."
Chad Gifford, President and Chief Operating Officer of Fleet, said, "We will
bring together the best of the two companies, specifically the capabilities and
expertise of Fleet and the relationship management skills of Summit. Moreover,
we will combine and maintain the outstanding community investment and
philanthropic levels of both companies in New Jersey, which total $4 million per
year."
T. Joseph Semrod, Chief Executive Officer of Summit, said, "This acquisition is
the right one for Summit, as it provides significant value to our shareholders,
our customers, our employees, and the members of our communities. Together, our
combined organization will be able to offer our customers a broader and more
sophisticated array of products and services, while continuing to provide the
highest levels of customer service. Importantly, Fleet has committed to
maintaining our current high levels of community, charitable and economic
development commitments, deserving of our outstanding CRA rating." Semrod has
agreed to continue to serve as Chairman of the New Jersey bank and will be named
a Vice Chairman and a member of the board of directors of FleetBoston Financial
Corporation. John G. Collins, a current Vice Chairman of Summit, will serve as
President of the New Jersey bank.
Summit has $39 billion in assets, and more than 500 branches across New Jersey,
Pennsylvania and Connecticut. Fleet, with assets of $181 billion, has
approximately 1,200 branches in New England, New York and New Jersey. At
completion of the transaction, expected in the first quarter of 2001, the
combined institution will have approximately $220 billion in assets.
The transaction is expected to be immediately accretive to Fleet's earnings.
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Also today, Fleet announced that its Board of Directors has rescinded its prior
authority, granted in April 2000, to repurchase up to $2.0 billion of its common
stock to comply with the limitations of pooling-of-interests accounting in its
acquisition of Summit.
FleetBoston Financial is the eighth largest financial holding company in the
United States. An $181 billion diversified financial services company, it offers
a comprehensive array of innovative financial solutions to 20 million customers
in more than 20 countries and territories. Among the company's key lines of
business are: retail banking, with approximately 1,200 branches and over 3,400
ATMs in the Northeast; commercial banking, including capital markets/investment
banking and commercial finance; investment services, including discount
brokerage, and full service banking through more than 250 offices in Latin
America. Fleet Boston Financial is headquartered in Boston and listed on the New
York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSF: FBF).
Summit Bancorp (NYSE: SUB) is a $39 billion diversified financial services
company headquartered in Princeton, New Jersey. Through Summit's 500 branches,
600 ATMs and electronic commerce offerings such as Summit Online Banking, it
provides comprehensive financial services to an extensive retail, corporate
banking and private bank customer base in New Jersey, Eastern Pennsylvania, and
Connecticut. For additional information about the company, please visit its web
site at http://www.summitbank.com.
A conference call for the investing public will be broadcast live over the
Internet at 10:00 a.m. EDT on Monday, October 2, 2000. The call is available at
http://www.fleet.com (listen only).
SOURCE FleetBoston Financial Corporation
CONTACT: Media - James Mahoney of FleetBoston Financial,
617-434-9552; or Steven Lubetkin of Summit Bancorp, 609-514-7920;
or Investor - John Kahwaty of FleetBoston Financial,
617-434-3650; or Kerry Calaiaro of Summit Bancorp, 609-987-3226/
