Sovereign Bancorp, Inc Confirms 1st webbankdirect.com Tracking Stock Proposal
PHILADELPHIA--(BUSINESS WIRE)--Aug. 2, 1999--In response to rumors, Sovereign Bancorp, Inc. (''Sovereign'') (NASDAQ/NMS:SVRN - news) confirmed today that its Board of Directors had recently authorized its management to submit amendments to its articles of incorporation to its shareholders, for approval regarding 1st webbankdirect.com.
The proposal, if submitted to and approved by shareholders, would create a new class of Sovereign common stock intended to reflect the value and track the future operating performance of 1st webbankdirect.com -- Sovereign Bank's new internet banking division -- cause Sovereign's existing common stock to reflect the value and track the performance of the remainder of Sovereign's consolidated operations, and when deemed appropriate by management, distribute the 1st webbankdirect.com tracking stock to Sovereign's shareholders on a tax-free basis.
1st WEBBANKDIRECT.com is scheduled to be launched September 30, 1999. The internet banking operation -- targeted at customer groups through affinity marketing -- will offer a low-cost, simple menu of banking and investment products, including transaction accounts, bill paying services, investment accounts and brokerage services.
On July 21, 1999, Sovereign announced the appointment of Cliff Lavin as President and Managing Director of 1st webbankdirect.com. Lavin is a start-up specialist and marketing executive with a background in building companies and new ventures from concept to profitable operations.
He comes to Sovereign from GMAC Commercial Mortgage in Horsham, Pennsylvania where he was the Managing Director and CEO of a start-up sales and marketing company. He also served as vice president, of marketing for a telecommunications start-up unit of GE Capital in Los Angeles, and a director of marketing services for Mattel Electronics working in managing communications, merchandising and sales support and an advertising executive for Foote, Cone and Belding.
''Our internet bank coupled with this tracking stock proposal reaffirms our continuing commitment to creating maximum value for our shareholders,'' commented Jay Sidhu, Sovereign Bancorp, Inc. and Sovereign Bank President and CEO and Chairman of 1st webbankdirect.com, a division of Sovereign Bank.
The distribution of the 1st webbankdirect.com tracking stock is subject to a number of conditions, including submittal to and approval by Sovereign's shareholders, the effectiveness of a registration statement intended to be filed with the SEC, the acceptance of the tracking stock for listing on the NASDAQ NMS, satisfactory to Sovereign that the distribution of the tracking stock will be tax free to Sovereign and its shareholders.
The Company cautioned that these conditions, the operating performance of the division, market reaction to the proposal and other factors might hinder, delay, or make impracticable the submission of the proposal to shareholders and/or distribution of the 1st webbankdirect.com stock. |
