August 23, 1999 16:48
Bank of America Announces Merger of
CarFinance.com With E-LOAN
August 23, 1999 /PRNewswire/ -- Bank of America (NYSE: BAC) announced today its intent to merge CarFinance.com into E-LOAN in exchange for an approximate 5 percent stake in E-LOAN, creating the leading Internet provider of automobile and mortgage loans.
Bank of America owns 80 percent of CarFinance.com, the leading on-line
automobile finance company. CarFinance.com President Robert Ferber and other individuals own 20 percent of the company. Ferber founded CarFinance and will continue to manage the company.
E-LOAN is the leading Internet mortgage lender. Combining the two companies will create the leading Internet provider of the two most important consumer loan segments.
Kenneth D. Lewis, president of Bank of America, said the transaction emphasizes the bank's intention to increase its presence in Internet finance.
"This transaction will help us form a solid strategic alliance with a well-established, publicly traded Internet company that is significantly larger and more diversified than CarFinance.com," Lewis said.
Lewis is expected to join E-LOAN's board of directors when the transaction is complete.
"The strategic alliance will allow Bank of America and E-LOAN to expand their partnership to bring more and better financial products to Internet consumers in a single, powerful on-line destination," said Chris Larsen, E-Loan's chief executive officer.
CarFinance is valued at 2.88 million shares of E-LOAN, a fixed exchange ratio based on E-LOAN's recent trading activity. The transaction is expected to close in the third quarter, subject to regulatory approval.
When the transaction is completed, Bank of America will fund mortgage and automobile loans originated by E-LOAN. Bank of America and E-LOAN have an existing correspondent mortgage banking relationship. Executives of both companies said they anticipate an enhanced, mutually beneficial relationship.
Bank of America, with $614 billion in assets, is the largest bank in the United States. The company serves more than 30 million households and two million businesses across the country, offering customers the largest and most convenient delivery network from offices and ATMs to telephone and Internet access. It also provides comprehensive international corporate financial services for clients doing
business around the world. The company creates financial relationships featuring a full array of financial service, from traditional banking products to investments and capital raising within the securities markets. Bank of America stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange. Further investor information can be found
at www.bankofamerica.com/investor .
E-LOAN, Inc. (Nasdaq: EELN) (www.eloan.com ) launched its on-line mortgage operations in June 1997. At www.eloan.com, borrowers can compare, apply for and obtain home loans from many nationally recognized lenders. E-LOAN, Inc. offers borrowers origination cost savings of more than 50 percent as compared to obtaining a mortgage through most traditional mortgage brokers and single-source lenders. After closing a loan, E-LOAN, Inc. can, at the customer's request,
continue to send customized information about new products that become
available, helping consumers turn a mortgage into a working financial asset. The company's loan processing center is located in Dublin, CA.
www.bankofamerica.com
SOURCE Bank of America Corporation
/CONTACT: Stephen Staudigl of Bank of America, 704-388-6806, or
Tiffany Kelly of E-LOAN, 925-560-2614/
/Web site: eloan.com /
/Web site: bankofamerica.com /
/Web site: bankofamerica.com / |
