"We are extremely pleased with the performance of our investment in First Union and the excellent relationship we have enjoyed with this great company," said Emilio Botin, chairman and chief executive officer of Banco Santander. "While our initial investment made in 1991 in First Fidelity Bancorporation was a strategic move for us, our current investment in First Union is not strategic in nature. We have the utmost confidence in First Union's ability to continue to generate exceptional returns for its investors."
According to Banco Santander, the proceeds from the sale of all of its shares of First Union common stock will enable it to further strengthen its provisions and capital position.
The offering by First Union represents the previously announced issuance of shares of First Union common stock in order to account for its pending acquisition of Signet Banking Corporation (NYSE:SBK) as a pooling of interests.
All of the shares will be offered simultaneously in the United States and internationally through underwriters led by Morgan Stanley Dean Witter, Goldman, Sachs & Co., Santander Investment Securities Inc., UBS Securities, Wheat First Butcher Singer, and their international affiliates. Santander Investment Securities Inc., Morgan Stanley Dean Witter and Goldman, Sachs & Co. are acting as joint global coordinators of the offering. UBS Securities is the financial advisor to First Union.
First Union acquired First Fidelity Bancorporation on Jan. 1, 1996. First Union Corporation is the nation's sixth largest bank holding company with assets of $143 billion as of June 30, 1997.
Santander is Spain's leading financial group with $161 billion in assets as of June 30, 1997.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. When available, copies of the prospectus relating to the offering may be obtained from the underwriters.
Media contact is Jeep Bryant at 704-374-2957 (office) or 704-442-9046 (home). Investor contacts are Alice Lehman at 704-374-4139 or Herb Althouse at 704-383-9404.
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