M&I Spins Metavante Onto the Dance Floor

April 25, 2007

Marshall & Ilsley (MI), a $55+ billion regional bank holding company is preparing to sponsor the spinoff of Metavante, its outsourcing subsidiary, to shareholders. Warburg Pincus has agreed to pay M&I $625 million for 25% of Metavante. In addition, Metavante will take on $1.75 billion in debt in order to pay M&I a dividend of $1.67 billion. When the spinoff is completed, current M&I shareholders will own stock in both the bank and Metavante. M&I management has plans to use the fresh capital for bank acquisitions and share repurchases. Metavante plans to continue to expand its business.

Read more to find out how to receive access to this and other A & O Briefs.