After squabble, Riggs Bank agrees to US$642 million buyout by PNC

[seemslikeadream]

Charles Sheehan
Canadian Press
Thursday, February 10, 2005

PITTSBURGH (AP) - Salvaging a deal that appeared dead earlier this week, the regional bank PNC Financial Services Group Inc. struck an agreement to pay about $642 million US in cash and stock for Riggs Bank, an old-line Washington institution that ran into legal trouble over suspicious financial transactions.

PNC said Thursday it has agreed to pay $20 per share for Riggs, $4.25 a share less than the price announced last summer before Riggs ran into regulatory trouble. The agreed price was higher than a revised offer of $19.32 per share that Riggs said PNC had subsequently made and Riggs rejected.

The deal, approved by boards at both companies, is expected to be closed "as soon as possible," said Mark Hendrix, Riggs spokesman.

It is subject to regulatory clearance and approval by Riggs shareholders.

Riggs, which once had a near-monopoly on business with the capital's diplomatic community, had sued PNC on Monday after its suitor cut its buyout offer by about 20 per cent after Riggs pleaded guilty to violations of a law to prevent money laundering. Riggs has dropped the suit.
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http://www.canada.com/businesscentre/story.html?id=fc39cc2c-f85d-4a23-a2b2-8e26e37c158e

[osaMABUSh]

1. yes, and the same day PNC lays off 5% of workforce

For PNC employees, the good news today is that PNC is acquiring Riggs, the bad news is that you lose your job anyway. I know, I work at PNC (stil). You probably won't read about it in the press since PNC likes to trickle out the layoffs but ultimately the layoff will hit 5-10% of 20,000 employees. Hey, whatever works for Wall Street...

[w4rma]

2. Another merger. Fewer competition. Bigger business. (nt)

[Carl Brennan]

3. What does this mean?

PNC had been seeking protection from additional lawsuits related to Saudi Arabia and the Sept. 11 terrorist attacks, and also transactions with Pinochet, industry experts said. In addition to normal regulatory approvals, PNC is awaiting exemptions from the Department of Labor and the Securities and Exchange Commission to mitigate possible financial impact from Riggs' plea agreement with the Department of Justice.

What it looks like to me is that these corporate predators get away with all this shit by seeking immunity after a makeover (changing ownership). Riggs gets a 16 million dollar fine but what is that compared to its overall value?

They should liquidate the damn bank and turn the assets over to the victims of their vile little enterprises.

[seemslikeadream]

4. 9/11 relatives sue bank in terror attacks

Islander joins action accusing Washington's Riggs National Bank of aiding al-Qaida backers
Tuesday, September 14, 2004
By TERENCE J. KIVLAN

WASHINGTON -- Lawyers for Sept. 11 families suing the Saudis have filed a related class-action legal action accusing a major bank here of aiding financial backers of the al-Qaida terrorist group through negligence.

The bank, Riggs National Bank, was fined $25 million in May for failing to properly monitor millions of dollars in Saudi financial transactions, including withdrawals now being investigated for possible connections to terrorism.

The suit charged that Riggs officials "impeded the battle against terrorism and substantially contributed to the terrorists being permitted to evade detection."

Riggs has been under investigation since regulators reportedly traced the "charitable contributions" to the hijackers two years ago. Since then investigators have discovered tens of millions of dollars in questionable transactions at Riggs by Saudi diplomats.

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http://www.silive.com/news/advance/index.ssf?/base/news...


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