Table 1

Merger attempts of large US banks in 2008

AcquirersTargetsMethod of paymentAnnouncement dateGovernment support (2)Deal agreed voluntarily (3)
Successful merger attempts     
JPMorgan Chase (JPM)Bear Stearns (BSC)All stockMar-08YesNo
JPMorgan Chase (JPM)Washington Mutual (WAMU)Issue new stocks (1)Sep-08NoYes
Bank of America (BAC)Merrill Lynch (MER)All stockSep-08NoYes
Bank of America (BAC)Countrywide (CFC)All stockJan-08NoYes
Wells Fargo (WFC)Wachovia (WB)All stockOct-08NoYes
Failed merger attempts     
Bank of America (BAC)Lehman Brothers (LEH) Sep-08NoNo

Note(s): (1) New stocks were issued to raise cash to pay for the acquisition. All other acquisitions are stock for stock deals

(2) “Government support” indicates that there was government support for the deal on the event day

(3) “Deal agreed voluntarily” indicates that deal agreed with no government support

Source(s): Financial Commission (2011), Annual reports of acquiring banks

or Create an Account

Close Modal
Close Modal