Banc One Corp

Banc One Corp. moved to expand its consumer banking presence in Texas by announcing plans Monday to acquire the state's fifth-largest bank, Team Bank, in a $782-million stock swap. The proposed deal, subject to regulatory approval, would be the largest in Texas banking since Columbus, Ohio-based Banc One entered the state in 1989 with the purchase of the failed MCorp of Dallas.

AT&T Corp. and IBM Corp. won contracts valued at about $1.8 billion to manage the telephone and computer networks of Banc One Corp. IBM said it won a separate $2.2-billion, five-year contract from Boeing Co. to manage the aircraft maker's server computers and provide its telephone and videoconferencing service. AT&T said its Banc One contract, for $1.4 billion over six years, is its largest ever for managing such a network.

Banc One Corp., based in Columbus, said it would merge with American Fletcher Corp. of Indianapolis in a stock swap agreement that will create a bank holding company with assets of about $15 billion. The deal is valued at roughly $600 million. Banc One has has 22 Ohio affiliates and $10.8 billion in assets.

The Justice Department said it cleared the $29-billion merger of Banc One Corp. with First Chicago NBD Corp. after the banks agreed to divest 39 branch offices in Indiana with total deposits of nearly $1.5 billion. The banks also offered to sell some middle-market commercial loan operations in Indiana, the Justice Department's antitrust division said. Union Planters Corp. agreed to acquire the assets in a deal expected to be completed in the first quarter of 1999.

2 Major Banks to Hold the Line on Prime Rate: Chemical Banking Corp. and Banc One Corp. said they are unlikely to follow the lead of Morgan Guaranty Trust Co. in dropping its prime interest rate. So far, no big banks have followed Morgan's surprise decision Monday to drop its rate half a point to 5.5%. Analysts predicted such a cut, if matched by other banks, would hurt bank profitability. Walter V. Shipley, president and chairman-elect of Chemical Banking Corp.

GM May Launch Credit Card: General Motors Corp. may be on the verge of launching its widely expected general-purpose credit card, which would further crowd the field of non-bank card sponsors. Industry sources said the automotive giant has signed a contract to market a MasterCard in conjunction with Banc One Corp., the Ohio-based company that is the nation's 14th-largest issuer of credit cards. General Motors would not comment.

* Banc One Corp.'s First USA credit card unit bought Chevy Chase Bank's credit card business, making it the No. 2 U.S. credit card company. Terms were not disclosed. Columbus, Ohio-based Banc One said First USA bought $4.9 billion in card loans, will hire Chevy Chase's 1,300 credit card employees and will take over the bank's credit card facilities in Frederick, Md.

MCI Communications Corp. has announced two Midwest contracts worth more than $60 million. Columbus, Ohio-based Banc One Corp. and MCI disclosed a four-year, $42-million minimum agreement for MCI to replace five current long-distance companies as Banc One's primary provider of communications services. Banc One, which has assets of $27.2 billion, operates banking organizations in Indiana, Kentucky, Michigan, Ohio, Wisconsin and Texas. Separately, Household International Inc.

Banc One to Acquire West Virginia's Biggest Bank: Banc One Corp. extended its reach into West Virginia by announcing plans to buy Key Centurion Bancshares Inc. in a stock swap valued at $536 million. Banc One, a regional giant based in Columbus, Ohio, and Charleston, W.Va.-based Key Centurion said they signed a preliminary merger agreement.

WIn the latest strategic alliance between financial services and retailing firms, Columbus, Ohio-based Banc One Corp. said it will install automated teller machines in about 2,000 centers operated by San Diego-based Mail Boxes Etc. throughout the U.S. The Banc One/Mail Boxes Etc. ATMs will also sell prepaid phone cards and postage stamps. The companies said that modified Mail Boxes Etc. centers will also be located in selected Banc One branches.

* Banc One Corp.'s First USA credit card unit bought Chevy Chase Bank's credit card business, making it the No. 2 U.S. credit card company. Terms were not disclosed. Columbus, Ohio-based Banc One said First USA bought $4.9 billion in card loans, will hire Chevy Chase's 1,300 credit card employees and will take over the bank's credit card facilities in Frederick, Md.

The biggest U.S. banks reported strong first-quarter profits Tuesday, beating Wall Street's expectations as trading and core business operations showed solid growth and financial markets soared. Chase Manhattan Corp., the nation's largest bank-holding company, said profit from operations rose 11% to $1.05 billion, or $2.35 a diluted share, from $949 million, or $2.02, in the year-ago quarter. The latest results beat the average forecast of $2.26 a share, based on a survey by First Call Corp.

As many as 18,000 jobs could be lost as the result of NationsBank Corp.'s merger with BankAmerica Corp. and Banc One Corp.'s acquisition of First Chicago NBD Corp., mostly in technical and support staff. "The biggest overlap will be in finance, treasury, compliance, systems, operating activities and administration," where "you just don't need the extra people," said Peter Crist of Chicago-based recruiting firm Crist Partners. NationsBank and BankAmerica's merger into the second-largest U.S.

Banc One Corp., the nation's eighth-largest bank holding company, said it agreed to acquire New Orleans-based First Commerce Corp. for about $2.7 billion in stock. The purchase would make Banc One the largest banking company in Louisiana, with a leading position in five of the top six markets in the state, Banc One said. Banc One, based in Columbus, Ohio, already operates in Louisiana as a result of its 1995 acquisition of Baton Rouge-based Premier Bancorp.

WIn the latest strategic alliance between financial services and retailing firms, Columbus, Ohio-based Banc One Corp. said it will install automated teller machines in about 2,000 centers operated by San Diego-based Mail Boxes Etc. throughout the U.S. The Banc One/Mail Boxes Etc. ATMs will also sell prepaid phone cards and postage stamps. The companies said that modified Mail Boxes Etc. centers will also be located in selected Banc One branches.

After watching AT&T, General Motors and independent credit card companies capture a growing share of the consumer credit business, Banc One made its own move Monday by announcing plans to acquire First USA for $6.75 billion. The deal would create the nation's third-largest credit card operation, with a combined 32 million cardholders, marrying the nation's 10th-largest bank with one of the fastest-growing credit card companies.

In a report that is likely to disappoint nervous technology stock investors, Intel Corp. reported lower-than-expected fourth-quarter earnings Tuesday, blaming the results on falling prices and weaker-than-expected demand for personal computer motherboards. Separately, Sun Microsystems Inc. said its profit grew 54% for its fiscal second quarter as the company enjoyed stronger sales of its workstations.