B of A Makes a Move for ABN AMRO's LaSalle Bank

April 23, 2007

Bank of America (BAC) and ABN AMRO (ABN) have agreed on an all-cash deal for LaSalle Bank, a division of ABN AMRO Holding NV. The deal's net cost to B of A will be $16 billion. This deal will catapult B of A from a distant #10 into the #1 market position in Chicagoland, which is the #3 US market. B of A also picks up 260 branches in Michigan and another #1 market share position. However, some investors may be upset, thinking that B of A is over paying for LaSalle just to bulk up in the Midwest. To gain regulatory approval, B of A will have to manage its total deposit base combined with LaSalle's to fall below the 10% ceiling.

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