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CALIFORNIA | BRIEFLY / FINANCIAL SERVICES

First Union to Buy Brokerage Everen Capital

April 27, 1999|Reuters

First Union Corp. said it plans to buy retail brokerage Everen Capital Corp. in a $1.1-billion stock deal. First Union, which acquired brokerage firm Wheat First Securities in January 1998, said the deal would form the nation's sixth-largest brokerage firm, with 6,259 registered representatives and 2,710 retail branches in 41 states. Everen would give the banking company 167 offices in 28 states, including lucrative markets in California, Texas, Wisconsin, Illinois and Colorado. First Union, based in Charlotte, N.C., has built the nation's sixth-largest banking company, with branches stretching along the East Coast from Connecticut to Florida. Chicago-based Everen has been independently owned since an employee buyout from Kemper Corp. in 1995. Everen employees own about 60% of the company. First Union would pay $0.555 per common share for each Everen share, valuing the acquisition at $30.53 per Everen share, based on First Union's closing price Friday of $55. On the New York Stock Exchange, First Union fell $1.44 to close at $53.56, while Everen jumped $4.31 to close at $28.44.

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