U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 6, 1999
STATE STREET CORPORATION
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(Exact name of Registrant as specified in its charter)
Massachusetts
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(State or other jurisdiction of incorporation)
0-5108 04-2456637
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Commission File No. (IRS Employer Identification No.)
225 Franklin Street, Boston, Massachusetts 02110
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(Address of principal executive offices) (Zip Code)
(617) 786-3000
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Registrant's telephone number, including area code
Item 5. Other Events
On May 6, 1999, Registrant announced that it had entered
into a definitive agreement to sell its commercial banking
business and its four branches to Citizens Financial Group,
a financial services group owned by the Royal Bank of
Scotland. Registrant's commercial banking business loans
totaled approximately $2.2 billion at March 31, 1999. The
transaction, which is subject to regulatory approval, is
expected to close by the fall of 1999.
The press release issued by Registrant in connection with
the announcement is filed herewith as Exhibit 99.
Item 7. Financial Statement and Exhibits
(c) Exhibits
99. Form of press release dated May 6, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dated: May 6, 1999
STATE STREET CORPORATION
/s/Maureen Scannell Bateman
By:____________________________
Maureen Scannell Bateman
Executive Vice President and
General Counsel
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EXHIBIT LIST
99. Form of press release dated May 6, 1999
FOR IMMEDIATE RELEASE
Media:
Hannah Grove
617-664-3377
Investors and Analysts:
Karen Wharton
617-664-2228
STATE STREET TO SELL COMMERCIAL BANKING BUSINESS
TO CITIZENS FINANCIAL GROUP
STATE STREET CONTINUES TO SHARPEN FOCUS
ON SERVING INSTITUTIONAL INVESTORS WORLDWIDE
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BOSTON, MASS., MAY 6, 1999 - STATE STREET CORPORATION (STATE STREET), ONE
OF THE WORLD'S LEADING SPECIALISTS IN SERVING INSTITUTIONAL INVESTORS, TODAY
ANNOUNCED THAT IT HAS ENTERED INTO A DEFINITIVE AGREEMENT TO SELL ITS
COMMERCIAL BANKING BUSINESS AND ITS FOUR BRANCHES IN QUINCY AND BOSTON TO
CITIZENS FINANCIAL GROUP (CITIZENS), A RHODE ISLAND-BASED FINANCIAL SERVICES
GROUP OWNED BY THE ROYAL BANK OF SCOTLAND. THE TRANSACTION, WHICH IS SUBJECT
TO REGULATORY APPROVAL, IS EXPECTED TO CLOSE BY THE FALL OF 1999.
STATE STREET'S COMMERCIAL BANKING BUSINESS LOANS AVERAGED
$1.9 BILLION FOR 1998 AND TOTALED APPROXIMATELY $2.2 BILLION AS OF MARCH
31, 1999. THE BUSINESS INCLUDES COMMERCIAL LENDING, DEPOSITS AND OTHER
BANKING SERVICES FOR NEW ENGLAND REGIONAL MIDDLE-MARKET COMPANIES AND
COMPANIES IN SELECTED INDUSTRIES NATIONWIDE. APPROXIMATELY 300 EMPLOYEES
OF STATE STREET'S COMMERCIAL BANKING BUSINESS AND RELATED SUPPORT FUNCTIONS
WILL BECOME EMPLOYEES OF CITIZENS AS A RESULT OF THE SALE.
State Street is committed to its core businesses of providing services to
institutional investors worldwide, including asset management, asset servicing
and accounting, defined contribution, financial markets and trade execution
customers. State Street will continue to offer banking services to
institutional investors, lease finance and global trade related customers.
These services include lending, deposits and cash management.
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"State Street provides investment management and asset servicing and
financial markets execution across the spectrum of investment needs," said
Marshall N. Carter, chairman and chief executive officer of State Street
Corporation. "While our commercial banking business is ideally positioned for
continued profitable growth, this transaction helps to complete State Street's
evolution towards a complete focus on the needs of institutional investors
worldwide, which began in the mid-1970's. Although we anticipate the earnings
impact of the sold business to be 5-7% dilutive, based on 1998 pro forma
results, we expect to improve upon that by investing in our core
businesses and continuing our global expansion. We have a focused strategy
of meeting the increasingly sophisticated needs of institutional investors
worldwide."
Lawrence K. Fish, chairman, president and chief executive
officer of Citizens Financial Group said: "This acquisition underscores our
commitment to commercial banking and strategy for growth. State Street's
commercial banking unit contributes high-quality regional and national assets
to our loan portfolio, significantly expands our presence in Massachusetts,
and strengthens our position as a major force in the New England banking
sector."
"We are very pleased to enter into this agreement with Citizens Financial
Group," said Carter. "We view Citizens as a high-quality organization that will
provide our customers with excellent service and offers the employees of our
commercial banking business a great institution in which to work."
Fish added, "We are not only acquiring some of the best customers in New
England, but the expertise of great commercial bankers. We look forward to
working with both."
With $5 trillion in assets under custody and $525 billion under management,
State Street Corporation is one of the world's leading specialists in serving
institutional investors. Offices are located in the United States, Canada,
Chile, Cayman Islands, Netherlands Antilles, Ireland, United Kingdom,
Netherlands, France, Belgium, Luxembourg, Switzerland, Germany, Czech
Republic, Austria, United Arab Emirates, Russia, People's Republic of China,
Taiwan, South Korea, Japan, Singapore, Australia, and New Zealand. State Street
Corporation's common stock is traded on the New York Stock Exchange under the
symbol STT. For more information, visit State Street's web site at
www.statestreet.com.
This news release contains forward-looking statements as defined by federal
securities laws. Important factors that could cause actual results to differ
materially from those indicated by any such forward-looking statements are set
forth in the company's annual report and subsequent SEC filings.
These include risks and uncertainties relating to: the value of worldwide
financial markets, dynamics of markets served, volatility of currency markets,
pace of new business, business mix, rate of technological change, and the
potential impact of the year 2000 on processing date-sensitive information.
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