First Of America Bank Corp

First of America Bank Corp. said Thursday that it will take over Michigan rival Security Bancorp Inc. in a $552-million deal that would put it among the nation's 35 largest banks. First of America, with headquarters in Kalamazoo, said the merger, which will be accomplished by a stock swap, was valued at $552 million, based on a price of $40.50 for each share of Security Bancorp.

Consolidation in the banking industry took another step forward Monday when National City Corp. said it will acquire First of America Bank Corp. in a stock swap worth $7.1 billion, a deal that would bring together two big Midwestern bank holding companies. A definitive agreement between the two calls for a tax-free exchange of 1.2 shares of National City common stock for each share of First of America common. Cleveland-based National City and Kalamazoo, Mich.

Consolidation in the banking industry took another step forward Monday when National City Corp. said it will acquire First of America Bank Corp. in a stock swap worth $7.1 billion, a deal that would bring together two big Midwestern bank holding companies. A definitive agreement between the two calls for a tax-free exchange of 1.2 shares of National City common stock for each share of First of America common. Cleveland-based National City and Kalamazoo, Mich.

First of America Bank Corp. said Thursday that it will take over Michigan rival Security Bancorp Inc. in a $552-million deal that would put it among the nation's 35 largest banks. First of America, with headquarters in Kalamazoo, said the merger, which will be accomplished by a stock swap, was valued at $552 million, based on a price of $40.50 for each share of Security Bancorp.

UnionBanCal Corp., which owns the third-largest bank in California, could fetch as much as $8.3 billion if its Japanese owner, Bank of Tokyo-Mitsubishi Ltd., puts it up for sale, investment bankers and analysts said. That's equal to $150 a share, or about 21 times estimated 1998 earnings and more than triple book value. Though high by historical standards, that's in line with recent bank acquisitions in the United States. This month, for example, National City Corp.

Wells Fargo & Co., the second-largest California bank, would consider a buyout as a wave of mergers in the industry pushes stocks to record highs, the bank's top executive said. Chairman and Chief Executive Paul Hazen said in an interview that the high prices banks are commanding in buyouts makes a sale something Wells Fargo has to consider. Its stock rose $15.81 to close at $332.06 on the NYSE after it surged as much as 10.7% in trading of 1.