Popular, Inc. and E-LOAN, Inc. Sign Merger Agreement
August 03 2005 - 9:38AM
PR Newswire (US)
PLEASANTON, Calif., Aug. 3 /PRNewswire-FirstCall/ -- Popular, Inc.
(NASDAQ:BPOP), the leading financial institution in Puerto Rico,
and E-LOAN, Inc. (NASDAQ:EELN), an online consumer direct lender,
today announced the signing of a definitive merger agreement under
which Popular, Inc. will acquire 100% of the issued and outstanding
shares of common stock and common stock equivalents of E-LOAN, Inc.
for $4.25 per share in cash, or approximately $300 million. This
transaction will further expand Popular, Inc.'s penetration into
the U.S. market, complement its existing non-prime and warehouse
lending businesses, and significantly enhance its technology
platform. E-LOAN, Inc., which originated over $5 billion in
mortgage, home equity, and auto loans in 2004, stands to benefit
from Popular, Inc.'s financial and capital markets strength as well
as from cross-promotion and integration opportunities. "We are
impressed with what E-LOAN has built. They are a great brand in
this space and we believe we can add financial strength and new
products to further enhance it," said Richard L. Carrion, Chairman
of the Board and Chief Executive Officer of Popular, Inc. According
to Bill Williams, President of Popular Financial Holdings Inc.,
"This is an exciting opportunity for Popular Financial Holdings to
strengthen its competitive capabilities." "Like E-LOAN, Popular has
honored its founding vision and strong values by being passionate
about serving customers and committed to treating people with
dignity and respect," said Chris Larsen, Founder and Chairman of
E-LOAN, Inc. "These shared values, combined with our complementary
strengths and Popular's long-term focus, will benefit our employees
and customers as well as the proliferation of online lending for
many years to come." E-LOAN, Inc. will maintain its brand identity
and become a wholly owned subsidiary of Popular Financial Holdings,
Inc. operating in Pleasanton, California. Mark Lefanowicz, Chief
Executive Officer and President of E-LOAN, Inc., will continue to
serve as President. In addition, E-LOAN, Inc. will retain
substantially all its employees. The transaction, which was
unanimously approved by the boards of directors of both companies,
is subject to E-LOAN, Inc. shareholder approval and is expected to
close in the fourth quarter of 2005. J.P. Morgan Securities Inc.
acted as exclusive financial advisor to E- LOAN, Inc. and issued a
fairness opinion in conjunction with the transaction. Wachtell,
Lipton, Rosen & Katz served as legal counsel to E-LOAN, Inc.
and Sullivan & Cromwell LLP served as legal counsel to Popular,
Inc. About Popular, Inc. Popular, Inc. is a full service financial
services provider with operations in Puerto Rico, the United
States, the Caribbean and Latin America. As the leading financial
institution in Puerto Rico with over 280 branches and offices, the
Corporation offers retail and commercial banking services through
its banking subsidiary, Banco Popular de Puerto Rico, as well as
investment banking, auto and equipment leasing and financing,
mortgage loans, consumer lending, insurance and information
processing through specialized subsidiaries. In the United States,
the Corporation has established the largest Hispanic-owned
financial services franchise, providing complete financial
solutions to all the communities it serves. Banco Popular North
America operates over 135 branches in California, Texas, Illinois,
New York, New Jersey and Florida, as well as 130 financial services
stores under the name of Popular Cash Express. The Corporation's
finance subsidiary in the United States, Popular Financial
Holdings, Inc., operates nearly 200 retail lending locations
offering mortgage and personal loans, and also maintains a
substantial wholesale broker network, a warehouse lending division,
loan servicing, and an asset acquisitions unit. The Corporation
continues to use its expertise in technology and electronic banking
as a competitive advantage in its Caribbean and Latin America
expansion, through its financial transaction processing company,
EVERTEC. The Corporation is exporting its 111 years of experience
through the region while continuing its commitment to meet the
needs of retail and business clients through innovation, and to
fostering growth in the communities it serves. Popular is ranked
among FORTUNE magazine's 2005 100 Best Companies to Work For. About
E-LOAN E-LOAN(R) is an online consumer direct lender dedicated to
providing borrowers with a Radically Simple(SM) way to obtain
mortgage, auto and home equity loans. Since its launch in 1997,
E-LOAN has drawn upon its pro consumer values to improve the
lending experience in revolutionary ways. By eliminating the
traditional incentive structure to charge consumers higher rates,
giving consumers free access to credit scores and eliminating
lender fees, E-LOAN is providing a uniquely open, fair and honest
loan process. Protecting consumers' financial privacy is also a
paramount concern, prompting E-LOAN to implement industry leading
privacy practices and advocate strong consumer financial privacy
protection laws. Consumers have recognized E- LOAN's
trustworthiness and respect for customers. An independent study
conducted by TRUSTe and The Ponemon Institute ranked E-LOAN as one
of the top 20 most trusted companies for privacy in America. E-LOAN
was the highest ranked online financial services company to make
the top 20. In another independent study by The Customer Respect
Group, E-LOAN received the overall highest rating in the Online
Customer Respect Study of North America's largest financial
services firms. In connection with the proposed transaction,
E-LOAN, Inc. will be filing a proxy statement and other materials
with the Securities and Exchange Commission. Investors are urged to
read the proxy statement and these materials when they are
available because they will contain important information regarding
E-LOAN, Inc. and the merger described above. E-LOAN, Inc. and its
officers and directors may be deemed to be participants in the
solicitation of proxies with respect to the proposed transaction.
Information regarding such individuals is included in E-LOAN,
Inc.'s proxy statements and Annual Reports on Form 10-K previously
filed with the Securities and Exchange Commission, and in the proxy
statement relating to the merger when it becomes available.
Investors may obtain a free copy of the proxy statement and other
relevant documents when they become available, as well as other
materials filed with the Securities and Exchange Commission
concerning E-LOAN, Inc. and these individuals, at the Securities
and Exchange Commission's website at http://www.sec.gov/. These
materials and other documents may also be obtained for free from
E-LOAN, Inc. at E-LOAN, Inc.'s website at http://www.eloan.com/,
under the heading "About E-LOAN," "Investor & Media Relations".
DATASOURCE: Popular Inc. CONTACT: Teruca Rullan, Senior Vice
President, Corporate Communications, Popular, Inc.,
+1-917-679-3596, or ; or Tiffany Fox, Communications Director,
Corporate Communications, E-LOAN, Inc., +1-925-847-6314, or Web
site: http://www.popularinc.com/ http://www.eloan.com/
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