PNC Financial Services announced on October 24, 2008 it would buy the financial holding company National City Corporation..PR Newswire: PNC to Acquire National City (October 24, 2008) It took over the company on December 31, 2008, after buying it for $5.6 billion. The integration of National City into PNC will take about two years, according to company newsletters. Columbus Business FIrst: PNC, National City integration to take 23 months (December 10, 2008) Cleveland.com: National City owner PNC to cut 5,800 jobs February 3, 2009)
PNC Layoffs
In February 2009, PNC Financial Corporation announced it will cut about 10 percent of its workforce, or about 5,800 employees by 2011. They include about 4,000 job cuts that National City Corporation announced in October 2008 before the acquisition. The announcement came as PNC reported its first loss since 2001, in the forth quarter of 2008, a loss partly due to costs of integrating of National City Corporation into the company.WKRC-TV: PNC, Fidelity Announcing Layoffs (February 3, 2009) Bloomberg: PNC Shares Fall as Bank Reports First Loss Since ’01, Job Cuts(February 3, 2009)
References
Fast Facts
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PNC bought National CIty for $5.2 billion in stock, or $2.23 per National City share, and $384 million in cashUSA Today: PNC agrees to buy ailing National City for $5.6 billion (October 24, 2008)
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$7.7 billion in preferred shares and related warrants will be issued to the U.S. Treasury DepartmentThe New York Times: PNC to Buy National City for $5.2 Billion (October 24, 2008)
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Issued under the capital-infusion program, meant to stabilize financial institutionsThe New York Times: PNC to Buy National City for $5.2 Billion (October 24, 2008)
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National City Bank is the primary subsidiary of National City Corporation
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