Bank of America completes acquisition of MBNA

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Tuesday, January 3, 2006

Bank of America Corp. has completed its acquisition of MBNA Corp. in a deal worth about $34.2 billion. Bank of America now has 40 million active credit card accounts. MBNA was a leader in affinity marketing with relationships with organizations like the NFL and L.L. Bean. Shareholders of MBNA will receive .5009 common shares of Bank of America plus $4.125 in cash for each share. MBNA had 24,700 employees prior to the deal, Bank of America had over 177,000. 6,000 of those jobs will be eliminated saving the bank $850 million by 2007. Bank of America is the world's second largest bank.