Higher bid for Bank America

Press, 4 November 1986, Page 25

Higher bid for Bank America

PA San Francisco First Interstate Bancorp has increased its offer to take over the financially ailing Bank America by SUS4.OO a share of common stock. The new bid of $22 a share would total SUS 3.4 billion ($NZ6.69 billion) and is SUS63O million (SNZI24I million) more than the proposal the Los Angeles-based bank submitted to Bank America on October 3. In a statement, BankAmerica’s chairman and chief executive officer, A. W. (“Tom”) Clausen, said: “Bank America has received a revised merger proposal from First Interstate Bancorp. Bank America will review the First Interstate proposal with its. financial advisors and

will take action as appropriate.” A Bank America spokesman declined to say whether the board would take any action at its regular scheduled monthly meeting on November 3. Industry analysts had. predicted that the board would reject the first offer as too low. The revised offer was made in a letter from First Interstate’s Chairman and Chief Executive Officer, Joe Pinola. "We continue to believe that the combination of our two institutions provides unique and substantial advantages for the shareholders, employees and customers of BankAmerica and First Interstate,” Mr Pinola said.