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June 10, 1997updated 05 Sep 2016 12:01pm

BANKAMERICA SPENDS $540M ON ROBERTSON STEPHENS, SELLS LENDER

By CBR Staff Writer

As we reported (CI No 3,177) BankAmerica Corp confirmed Monday that it will acquire investment bank Robertson Stephens & Co LLC in a deal valued at $540m, or about five times its book value. And in a separate transaction, according to Reuters, BankAmerica has agreed to sell its Security Pacific Financial Services unit to Commercial Credit Co, a subsidiary of Travelers Group for $1.6 bn. That price is about $300m more than the net tangible assets of Security Pacific, which provides home equity and unsecured loans and sales financing. In the Robertson Stephens deal, BankAmerica is taking special care with the acquisition of its Bay Area neighbor, reportedly earmarking a substantial chunk of the total payments to retain more than 60 key Robertson Stephens officers for about three-to-four years after the absorption of the firm. The arrangement calls for BankAmerica to hand over the entire total in cash, with about half up front and the rest over three years. Of the total, $70m is to go into a special pool designed to insure that the officers stay put. Robertson Stephens president and chief executive Michael McCaffery will remain in his position and chairman Sanford Robertson will be invited to join the BankAmerica board. The acquisition is subject to regulatory approval and is expected to be completed sometime in the fourth quarter.

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