Merger - Regions and Union Planters
Merger of Union Planters Corporation and Regions Financial Corporation
On Friday, January 23, 2004 Union Planters Corporation and Regions Financial Corporation announced they would merge. This will create the twelfth largest holding company in the United States. This merger was deemed the merger of equals (Hillard, 1/26/2004, para. 2). The stockholders of both companies overwhelming voted for the merger on June 8, 2004 (Morgan, 6/17/2004, para. 2). On June 17, 2004 the merger received approval from the Federal Reserve, the last of the governmental approvals needed (Morgan, 6/17/2004, para. 1). The merger effective date was July 1, 2004, when the Union Planters stock symbol ceased to exist (Morgan, 6/17/2004, para. 5). Union Planters Corporation was a 31.5 billion dollar holding company. They were the largest holding company headquartered in Tennessee and one of the largest thirty in the United States (Morgan, 6/17/2005, para. 10). Union Planters has 925 Automatic Teller Machines and 717 banking office. These banking offices are located in Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Missouri, Tennessee, and Texas (Morgan, 1/23/2004, para. 18). Before the merger, Union Planters revenues had decreased 11.86% from 2002 to 2003. Their net income also decreased by 2.3%. Union Planters ' compounded annual growth in the net income category was only .04% for both three and five years respectively (Thompson, 12/2003-5/2004). Union Planters has struggled the last few years due to their mortgage operations. If the merger had not taken place it would have struggled to reach the EPS guidance they gave a week before the merger announcement (Goldberg, Jason, 1/26/2004, para. 19). Union Planters does not have a good track record for integrating bank mergers, especially one of this size (Goldberg, Jason, 1/26/2004, para. 20). This might have been one reason why they fell into the arm of Regions. Union Planters has improved their balance sheet
On Friday, January 23, 2004 Union Planters Corporation and Regions Financial Corporation announced they would merge. This will create the twelfth largest holding company in the United States. This merger was deemed the merger of equals (Hillard, 1/26/2004, para. 2). The stockholders of both companies overwhelming voted for the merger on June 8, 2004 (Morgan, 6/17/2004, para. 2). On June 17, 2004 the merger received approval from the Federal Reserve, the last of the governmental approvals needed (Morgan, 6/17/2004, para. 1). The merger effective date was July 1, 2004, when the Union Planters stock symbol ceased to exist (Morgan, 6/17/2004, para. 5). Union Planters Corporation was a 31.5 billion dollar holding company. They were the largest holding company headquartered in Tennessee and one of the largest thirty in the United States (Morgan, 6/17/2005, para. 10). Union Planters has 925 Automatic Teller Machines and 717 banking office. These banking offices are located in Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Missouri, Tennessee, and Texas (Morgan, 1/23/2004, para. 18). Before the merger, Union Planters revenues had decreased 11.86% from 2002 to 2003. Their net income also decreased by 2.3%. Union Planters ' compounded annual growth in the net income category was only .04% for both three and five years respectively (Thompson, 12/2003-5/2004). Union Planters has struggled the last few years due to their mortgage operations. If the merger had not taken place it would have struggled to reach the EPS guidance they gave a week before the merger announcement (Goldberg, Jason, 1/26/2004, para. 19). Union Planters does not have a good track record for integrating bank mergers, especially one of this size (Goldberg, Jason, 1/26/2004, para. 20). This might have been one reason why they fell into the arm of Regions. Union Planters has improved their balance sheet
Bibliography: Continued Morgan Keegan. (1/23/2004). Regions and Union Planters to Merge, Create New Regional Force in Banking & Financial Services; Expected to be Cash Accretive in 200. Retrieved from Morgan Keegan Web Site: http://www.morgankeegan.com/html/blue/ourstory/news/pres_012304.asp Morgan Keegan. (6/17/2004). Regions, Union Planters Receive Approval for Merger. Retrieved from Morgan Keegan Web Site: http://www.morgankeegan.com/html/blue/ourstory/news/pres_061704.asp Thompson Bank Directory. (254th ed.). (12/2003-5/2004). United States: Thompson TFP Yahoo Finance. (1/25/2005). Regions Financial Corporation. Retrieved from Yahoo Finance Web Site: http://finance.yahoo.com/q/ta?s=RF&t=1y&l=on&z=m&q=l&p=m50,m200&a=&c=