Bank of America Corp. on Thursday said it will acquire MBNA Corp. in a $35 billion cash and stock deal that will result in 6,000 jobs cuts but transform the nation’s third-largest bank into one of the world’s largest credit card issuer.
Under terms of the agreement, MBNA shareholders will receive 0.5009 common shares of Bank of America plus $4.125 in cash for each of their shares. Based on Bank of America’s Wednesday closing stock price, the deal values MBNA at $27.50 per share, a 31 percent premium to the Wednesday closing price of $21.07. The deal is expected to close in the fourth quarter.
