PNC Financial Services Group Inc. moved quickly in agreeing to acquire National City Corp. for $5.2 billion on Oct. 24. PNC CEO James E. Rohr called Peter Raskind, his counterpart at National City, on Oct. 23 to strike a deal. The troubled Cleveland bank had been in talks with Minneapolis-based U.S. Bancorp but opted for a better bid from PNC, which had looked at National City in April but passed. Instead of selling, National City back then raised $7 billion by selling stock and convertible equity to a group of investors led by New York-based private equity firm Corsair Capital LLC.
PNC used Edward Herlihy, Lawrence Makow and Nicholas Demmo of longtime counsel Wachtell, Lipton, Rosen & Katz and tapped Citigroup Inc.'s David Head; Sandler O'Neill & Partners LP's Jimmy Dunne and Emmett Daly; and J.P. Morgan Chase & Co.'s Bill Winters, Tim Main, John Chrin, Fernando Rivas and Erik Warmstein for banking advice.
PNC also said on Oct. 24 that it would receive $7.7 billion from the U.S. government's troubled asset relief plan, or Tarp.National City went with the same team of advisers it used on the Corsair deal. Scott Romanoff, John Mahoney and Ken Coquillette of Goldman, Sachs & Co. provided banking advice. Goldman started working with National City in 2006 on the latter's $1.3 billion sale of San Jose, Calif.-based First Franklin Financial Corp. to Merrill Lynch & Co. Lyle Ganske and Christopher Hewitt of Jones Day, National City's longtime law firm, advised on that sale and the Corsair and PNC deals, on which the bank also tapped a team led by H. Rodgin Cohen at Sullivan & Cromwell LLP. National City's board used Cravath, Swaine & Moore LLP. U.S. Bancorp used Victor Lewkow and Paul Shim at Cleary Gottlieb Steen & Hamilton LLP and Morgan Stanley's Jonathan Pruzan.