Friday, August 25, 2000

What's the Buzz?

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Don't bet bank on merger rumors

        It would take magic — and at least $23 billion — to bring together the banking powerhouses run by brothers Jerry and John Grundhofer.

        Speculation rekindled again this week that Jerry Grundhofer's Firstar Corp. might be a potential buyer of U.S. Bancorp, run by John Grundhofer, Jerry's brother. Such a deal would bring together two of the industry's most aggressive and cost-efficient bankers and create a Midwestern banking giant with assets of $160 billion.

        The talk started again after two top executives at U.S. Bancorp suddenly resigned, prompting suggestions that the $86 billion company would seek a merger partner.

        Some observers once again pointed to Firstar, successor to Cincinnati's Star Banc Corp, as a possible acquirer.

        But other analysts said the talk is more about the Grundhofers being brothers, than reality based on sound business. The reason: Such a deal would likely be a merger of equals, offering little chance for a nice premium to investors at Firstar or U.S. Bancorp.
       

— Jeff McKinney

        Have a tip about a Tristate company that should be included in our daily Buzz? Call 768-8147 or e-mail business@enquirer.com.
       

       

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