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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 27, 2000
Advanta Corp.
(Exact name of registrant as specified in its charter)
Delaware 0-14120 23-1462070
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
Welsh and McKean Roads, P.O. Box 844, Spring House, PA 19477
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 657-4000
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Item 5. Other Events
On November 27, 2000 Advanta Corp. (the "Company" or "Advanta") announced that
negotiations to sell its Mortgage business to a major financial institution are
proceeding on track. Under the terms of the proposal, as previously announced,
the Company expects to receive a price that is in excess of book value. The
Company indicated that substantial progress has been made toward completion of a
definitive agreement. Although it will take longer to complete a definitive
agreement, the Company anticipates closing the transaction early next year.
The Company intends to seek shareholder approval for the transaction. While a
number of items remain to be negotiated and there can be no assurance that a
definitive agreement will be reached, if the transaction is consummated under
the terms of the proposal, it will result in the sale of virtually all mortgage
assets which represent 33% of owned assets at September 30, 2000.
Advanta (www.advanta.comhttp://www.advanta.com) is a highly focused financial
services company with over 2,700 employees, servicing approximately $25 billion
of assets, including approximately $12 billion in managed assets and
approximately $13 billion in assets serviced for third parties. Advanta provides
consumers and small businesses with targeted financial products and services,
including non-conforming mortgages, business credit cards, equipment leases,
insurance and deposit products. The Company is also one of the largest servicers
of non-conforming mortgages for third parties in the country.
Advanta has leveraged its first-class direct marketing and information based
expertise to develop state-of-the-art data warehousing and statistical modeling
tools that identify potential customers and new target markets. Advanta created
one of the first automated underwriting and sales engines in the non-conforming
mortgage industry. The Company also offers its customers and business partners a
broad range of self-service financial solutions and other services on the
Internet.
Advanta was named one of the 500 Most Admired Companies in America in FORTUNE
Magazine's most recent annual survey. In June 2000, American Banker ranked
Advanta Bank Corp. third among the top 100 community banks in the nation in
terms of return on average assets.
This Current Report on Form 8-K contains forward-looking statements that are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those projected. The most significant among these risks
and uncertainties are: (1) the effects of government regulation, including
restrictions and limitations imposed by banking laws, regulators,
examinations, and the agreements between the Company's bank subsidiaries and
their regulators; and (2) the completion of a definitive agreement generally
consistent with the proposal and the closing and timing of the transaction.
Additional risks that may affect the Company's future performance are detailed
in the Company's filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and its Quarterly Reports
on Form 10-Q.
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Form 8-K Advanta Corp.
November 27, 2000
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
None.
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Form 8-K Advanta Corp.
November 27, 2000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934,
the registrant has duly caused this amended report to be signed on its behalf by
the undersigned thereunto duly authorized.
Advanta Corp.
By:/s/ Elizabeth H. Mai
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Elizabeth H. Mai,
Senior Vice President,
Secretary and General Counsel
November 27, 2000
