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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (5665)	5/25/1999 11:26:00 AM
From: TLindt	Read Replies (2) \| Respond to of 20297

I take the 1/2 Billion back...300 Million...Instead. Tuesday May 25, 10:36 am Eastern Time First Union cools to merger, targets Net CHARLOTTE, N.C., May 25 (Reuters) - Acquisitive banking giant First Union Corp is ''cooling'' toward its earlier interest in merging with a bank of similar size, and rejects out of hand any suggestion that it is, itself, up for sale, its CEO said. ''I don't believe any combination of traditional banks makes a lot of sense anymore,'' First Union Chief Executive Ed Crutchfield said on a conference call with analysts and reporters on Tuesday. Crutchfield added that his interest in seeking a merger partner for First Union, the nation's sixth-largest bank, has ''cooled down.'' ''We are in the midst...of transforming this corporation from an old business model, which is a traditional bank, to a new business model,'' Crutchfield said. The new business model does not include merging with a similar-sized bank to expand its market presence, he said. First Union had been eyeing a so-called ''merger of equals'' to keep pace with rivals. The bank has set an internal goal of shifting about 25 percent of its customers to e-banking or telephone banking by 2001. Expenses on its ''brick and mortar'' operations could be cut by about 10 percent as it trims its network of 2,400 branches serving some 16 million customers, he said. Crutchfield also dismissed analysts questioning whether the bank, which cut its 1999 earnings outlook to $3.40-$3.50 a share from the earlier $4 a share projections, could be a target for a takeover. ''We simply have no interest in selling and that's all I have to say about that,'' he said. First Union Corp expects to boost its online customer base to 1.5 million customers by year end and 5 million by 2001 from 700,000 today as it expands its Internet presence, executives said. First Union plans to update its Internet banking site this summer and launch an online brokerage service in July. The moves will help the bank build a national presence while taking on discount brokers and fledgling ''e-banks.'' ''There's nothing that Schwab has that we can't offer this summer, so we're simply going to war with them,'' Crutchfield said, referring to Charles Schwab Corp's (NYSE:SCH - news) online brokerage business. The company expects to spend $150 million this year expanding its Internet banking operations, and likely will budget about the same amount next year, he said. The Charlotte, N.C.-based banking company is modifying its traditional model of banking -- dependent largely on ''brick and mortar'' branches -- by building a national Internet presence and increasing revenue from its telephone banking and its capital markets and capital management services. -------------------------------------------------------------------------------- More Quotes and News: Charles Schwab Corp (NYSE:SCH - news) First Union Corp (NYSE:FTU - news) Good Job First Union!....BTW need any bullets?...be sure and give us a call.

To: TLindt who wrote (5665)	5/25/1999 12:46:00 PM
From: TLindt	Read Replies (2) \| Respond to of 20297

>>>We are estimating 3.03 million subscribers by the end of the June 1999 quarter, up 6.4% over fiscal 1998. For fiscal 2000, we are estimating 4.38 million subscribers, up 44.3% over fiscal 1999. I guess the point isn't clear yet....if First Union the nations 6th largest banks chucks out the Brick & Mortar Model for the Internet with plans to move 4.3 Million customers to that platform over the next 19 months...the rest won't be able to just sit back and watch, they'll move. And for CheckFree to end up with just 1.35 Million new subscribers of First Unions radical 4.3 Million 19 month push seems extremely low to me considering what the other banks are now doing also. The Game has changed from my point of view.