BY JEFF McKINNEY
The Cincinnati Enquirer
When Star Banc Corp.'s Jerry A. Grundhofer reports for work today, it will be at the banking company's new headquarters about 400 miles northwest of the Queen City.
Mr. Grundhofer, chairman, president and chief executive at Cincinnati-based Star, will begin handling day-to-day duties at Firstar Corp. of Milwaukee today, when both companies are expected to complete their $8 billion merger.
Though the deal will create the nation 21st largest bank - adopting Firstar's name - with about $38 billion in assets and 720 branches and offices in 10 states, Star's 1.4 million customers will not immediately see changes in how the bank operates or handles accounts.
The closing of the deal between Star and Firstar means the bank holding companies become one and finalizes a merger process launched in July. The company's stock should begin trading today with a new ticker symbol, FSR.
"Nothing changes for our customers on Friday," said Richard K. Davis, who will oversee consumer banking from Cincinnati.
"Our customers will continue to bank with us the way they always have."
But by February, as both companies progress on merging, their customers will see Firstar signs replacing Star's long-standing blue-and-white banner, a major marketing campaign to introduce Cincinnati's newest corporate citizen and promotions expressing how Star is - and will remain - loyal to Cincinnati.
"Cincinnati will be the market where we'll likely spend the most time and money because we are committed and it's such a key part of our business," Mr. Davis said.
Firstar will continue to run Star's bread-and-butter consumer-banking operations, which account for about 60 percent of the bank's revenues, and its consumer-finance unit from Cincinnati.
Executives at Firstar, which will employ 14,000 and serve 3 million customers, have not said how many jobs might be cut, but indicated no branches will be closed because their retail operations don't overlap.
But Wall Street banking analysts have estimated the corporation might cut 1,000 to 1,500 jobs to help save about $174 million over two years.
