BALTIMORE -- Agreement has been reached for the purchase of First Maryland Bancorp, the second largest bank holding company in the state, by Allied Irish Banks PLC for an estimated $350 million.
First Maryland announced Monday that its board of directors had executed Saturday 'a definitive merger agreement' with Allied Irish, which currently owns 49.7 percent of First Maryland's stock, for the remaining 40.3 percent of the stock at $39.25 a share.
As part of the agreement, Allied Irish will make a cash tender offer by Friday for all the remaining shares.
There are currently 17,924,597 shares outstanding, said spokeswomn Geri Crouse.
Allied Irish must increase its ownership to 75 percent of the shares for the merger agreement to be completed, Crouse said. This would work out to around $350 million.
'No shares may be purchased if less than that number are tendered. The offer will remain open for at least 20 business days,' the First Maryland statement said.
The principal subsidiary of First Maryland is the First National Bank of Maryland, which had assets of $6.4 billion as of Sept. 30. The subsidiary earned $41.1 million, or 20 cents a share, for the nine-month period ending that date.
This was the second offer made by Allied Irish. In September, it made an offer of $35.25 a share, but this was rejected as inadequate on Oct. 18 by a special committee appointed by the First Maryland board of directors, the statement said.
First Maryland and Allied Irish agreed in principle in 1983 that Allied Irish would have the right to purchase a majority ownership in the Maryland company, the statement said.
Allied Irish is an Irish financial services company reportedly worth $21 billion.