Marshall & Ilsley to buy Gold Banc for $700 million

Thursday, November 10th 2005, 10:39 am

By: News On 6

NEW YORK (Dow Jones/AP) _ Marshall & Ilsley Corp. said Thursday it agreed to acquire Gold Banc Corp. for $700 million, in a move to tap into banking markets in Kansas, Missouri, Florida and Oklahoma.

Gold Bank, as the corporation's banks are called, had $4.1 billion in assets as of the end of September. It has 11 branches in Kansas and six in Missouri _ 13 of which are in the Kansas City area. It also has 11 branches, soon to be 12, in Florida, and three in Tulsa, Okla. The banks will turn into M&I Bank branches in the second quarter of next year.

Milwaukee-based Marshall & Ilsley, the parent of M&I Marshall & Ilsley Bank with over banking 200 locations in Wisconsin and 25 in Arizona, has assets of $45 billion.

Under the agreement, expected to close in the spring of 2006, Marshall & Ilsley will pay Leawood, Kan.-based Gold Banc $18.50 a share _ $2.78 of it cash and $15.72 in Marshall & Ilsley stock.

The offer represents a 23 percent premium to Gold Banc's Wednesday closing stock price of $15.

News of the deal sent Gold Banc shares surging $2.72, or 18 percent, to $17.72 in morning trading on the Nasdaq Stock Market.

Marshall & Ilsley stock fell 90 cents, or 2.1 percent, to $41.80 on the New York Stock Exchange.

The transaction is expected to close in the spring of 2006.

The transaction is expected to reduce earnings by less than 2 percent next year but add to profit in 2007, Marshall & Ilsley said.