Merger of Union Planters Corporation and Regions Financial Corporation
On Friday, January 23, 2004 Union Planters Corporation and Regions Financial Corporation announced they would merge. This will create the twelfth largest holding company in the United States. This merger was deemed the merger of equals (Hillard, 1/26/2004, para. 2). The stockholders of both companies overwhelming voted for the merger on June 8, 2004 (Morgan, 6/17/2004, para. 2). On June 17, 2004 the merger received approval from the Federal Reserve, the last of the governmental approvals needed (Morgan, 6/17/2004, para. 1). The merger effective date was July 1, 2004, when the Union Planters stock symbol ceased to exist (Morgan, 6/17/2004, para. 5).
Union Planters Corporation was a 31.5 billion dollar holding company. They were the largest holding company headquartered in Tennessee and one of the largest thirty in the United States (Morgan, 6/17/2005, para. 10). Union Planters has 925 Automatic Teller Machines and 717 banking office. These banking offices are located in Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Missouri, Tennessee, and Texas (Morgan, 1/23/2004, para. 18). Before the merger, Union Planters revenues had decreased 11.86% from 2002 to 2003. Their net income also decreased by 2.3%. Union Planters’ compounded annual growth in the net income category was only .04% for both three and five years respectively (Thompson, 12/2003-5/2004). Union Planters has struggled the last few years due to their mortgage operations. If the merger had not taken place it would have struggled to reach the EPS guidance they gave a week before the merger announcement (Goldberg, Jason, 1/26/2004, para. 19). Union Planters does not have a good track record for integrating bank mergers, especially one of this size (Goldberg, Jason, 1/26/2004, para. 20). This might have been one reason why they fell into the arm of Regions. Union Planters has improved their balance sheet somewhat, but their non-performing assets to assets ratio is still high compared to their peers. Their net charge offs for the average loans in 2003 was .89% (2004, para. 5).
Regions Financial Corporation before the merger was a 48.6 billion dollar holding company. Regions Financial operates 680 offices across the south. They also own Morgan Keegan...
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...t bank holding company. Mississippi Business Journal. Retrieved from Business & Company Resource Center Web Site: http://galenet.galegroup.com/servlet/BCRC?locID=memphis&srchtp=cmp&c=35&cc=1&mode=c&tcp=rf&docNum=A113646195&bConts=13115&vrsn=141&rcp=CO&rsic=PK&ste=72&tab=2&tbst=tsCM&tpc=Strategy+%26amp%3B+Planning&ccmp=Regions+Financial+Corp.&n=25
Reference List/Bibliography Continued
Morgan Keegan. (1/23/2004). Regions and Union Planters to Merge, Create New Regional Force in Banking & Financial Services; Expected to be Cash Accretive in 200. Retrieved from Morgan Keegan Web Site: http://www.morgankeegan.com/html/blue/ourstory/news/pres_012304.asp
Morgan Keegan. (6/17/2004). Regions, Union Planters Receive Approval for Merger. Retrieved from Morgan Keegan Web Site: http://www.morgankeegan.com/html/blue/ourstory/news/pres_061704.asp
Thompson Bank Directory. (254th ed.). (12/2003-5/2004). United States: Thompson TFP
Yahoo Finance. (1/25/2005). Regions Financial Corporation. Retrieved from Yahoo Finance Web Site: http://finance.yahoo.com/q/ta?s=RF&t=1y&l=on&z=m&q=l&p=m50,m200&a=&c=
From 1986 to 1989, the Federal Savings and Loan Insurance Corp. (FSLIC) closed 296 institutions with assets totaling $125 billion. With the creation of the Resolution Trust Corp. (RTC) in 1989 an additional 747 thrifts with assets totaling $394 billion were closed. That is a combined total of $519 billions in assets that contributed to a massive restructuring of the number of firms in the industry as stated by Curry & Shibut (2000).
Southern Union’s history dates back to the 1920s as a holding company for several gas utilities in Texas. Over the next sixty years the company expanded its gas utility operations and diversified into natural gas processing, exploration and production, refining, gas appliance sales, and real estate. This diversification strategy failed and in the late 1980s SUG divested everything but its natural gas distribution operations. In 1990 Southern Union was acquired by mobile phone company Metro Mobile, Inc; however, the resulting entity took the name Southern Union. The mobile phone operations would eventually be sold to Bell Atlantic and SUG re-focused on its natural gas distribution activities acquiring over 1.5mm customers through acquisitions in Missouri and the Northeast. In 2002, the company changed course once again decided to divest most of its gas distribution business and use the proceeds to expand into interstate natural gas pipelines. SUG acquired Panhandle Energy for $1.8bn in 2002 and its 50% stake in Citrus Corp, which owns Florida Gas Transmission, in 2006. Diversification continued when SUG acquired the natural gas gathering and processing firm, Sid Richardson, for $1.6bn. See the appendix for a map of Southern Union’s current operations.
CenTrust, first called Dade Federal Savings and Loan, was founded in 1934 during the Great Depression and eventually became a stalwart of the South Florida business establishment. By the early 1980s, Miami had a corporate community that any city would envy. The companies were large and growing. They contributed mightily to local causes. They virtually invented a skyline where none existed as late as the early 1980s. CenTrust Bank and David Paul gave huge sums of money and much effort toward founding the New World Symphony in the 1980s. But the local corporate world was shaken badly at that time. In South Florida, home of fragile physical, social and economic climates, big business became an endangered species. Prominent in the downtown skyline were buildings built by financial institutions that had failed or were in serious trouble. By November 1983, CenTrust had losses of $500 million and was headed toward insolvency and federal takeover. David Paul, pledging little more than some real-estate holdings, gained control and quickly remade and personalized the institution. Before long, the company's stock-ticker symbol became DLP, Paul's initials. At the end, as senior managers deserted him, David Paul held the posts of chairman, president, chief executive officer and chief operating officer.
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
Northrup National Bank should extend the loan to Butler. The company will roll much of its existing debt into the new loan, without extending itself significantly further than it currently is, and at a more favorable rate. Butler has been successful in keeping current on its debts, and based on projections should have the means to start paying these debts down. From the bank’s perspective, there’s little risk involved. With the industry expected to grow so much in the next year, Butler will be in a strong position, and potentially interested in borrowing more at the end of 1991.
In the same study “quantitative and qualitative analyses are conducted of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing” found that “The choice of internal versus external channels may vary depending on the employee's level of education, training, or skills (Terry).” They found “highly skilled or educated employees likely rely on internal reporting channels, while less educated employees often select external channels (Miceli and Near, 1992, 1984) (Terry).” Also “highly educated or skilled employees often have greater knowledge of where to report wrongdoing, including possible alternative reporting channels within
It used to be that whistleblowers were applauded, and they still are in the private sector, but it seems as if government whistleblowers are criticized and many are even criminally charged. There is certainly a different take on their activities. In fact, some advocates counsel federal employees not to come forward with information because if they do, their lives will be destroyed (Shulman, 2007). What often happens is that they will never be able to work in their careers again in the same capacity (Shulman, 2007). Many whistleblowers not only lose their jobs, but they lose their families and friends, and much of their money ends up going to attorneys (Shulman, 2007). Indeed, in today’s day and age, there is a surge of whistleblowers prosecutions, and it is quite worrisome (Burghardt, 2011). Are the rights of citizens being eroded in order to protect bureaucratic secrets? Many case studies in this area support the notion that thing have gone awry. First, we shall look at the concept of whistleblowers
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
In the 1970’s, Ralph Nard coined the term whistleblower referring to when a referee blows a whistle to indicate an illegal or foul play. Oxford dictionaries define whistleblower as “a person who informs on a person or organization regarded as engaging in an unlawful or immoral activity.” This can be in either the government or corporations. The debate on whistleblowers continues to be pertinent in light of recent scandals. Many believe in the value of transparency, but disagree about the correct way to achieve it. This is why we created laws, such as the Whistleblower Act and the Espionage Act. The Whistleblower Act was put in place in order to protect “[A]ny disclosure of information” that a covered employee “reasonably believes” evidences “a violation of any law, rule, or ...
That brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make such a merger successful. McClelland’s theory states, in regards to the need for achievement, that people strive “To excel one’s self.to rival and surpass others. to increase self-regard by the successful exercise of talent” (Kreitner & Kinicki, 2010, p. 215). By this definition, the merger would motivate leadership to excel in the face of a challenge, and to increase their professional self-regard in their success in doing so. On an individual level, you are asking the performers and employees to recognize both economic and social climates, and to come together in action to save both their careers, as well as their passion for life....
The act of whistle-blowing is an ethical issue that all employees have the right to. Whether they decide to make the corrupt information known publicly or anonymously, the information they provide can protect everyone involved. The ethical and moral sides of whistle-blowing can go both ways. In order to protect the customers, patients, or consumers of the harmful products the companies are offering, employees that have morals and feel the need to make the truth be known have an ethical responsibility to do so. Issues of being a whistle-blower are more controversial than the responsibilities of the employees doing so. When a whistle-blower takes action, they expose information from their company that it not meant to be public. They basically turn their backs away from their company and colleagues by revealing the truth. When surveying these issues, an employee who is torn by exposing information or keeping silent must decide whether it is more ethical to stay loyal to their organization or to the organization's
Whistle-blowers face ethical dilemmas in decision-making about reporting organizational misconducts. Manager’s disapproval of whistleblowing hinders employee’s willingness to report internal wrong doing. High rank managers are not to empathic to whistle-blowers because this
Morgan Stanley was established in 1935, and in 1997 merged with retail brokerage firm Dean Witter Discover and Co to become a global financial services organisation that employed more than 53,000 people in over 600 countries including Australia. Institutional Securities, Asset Management, Retail Brokerage and Discover were the four segments of Morgan Stanley. The merger altered the working environment of Morgan Stanley and created a divide in employee acceptance of the Retail Brokerage segment. It did not integrate well with the firm partly due to the information systems being different to the rest of the company.
Scholar Robert D. Enright ,believes that “ forgiveness is not condoning or excusing, because forgiving is not downplaying or distorting what has happened as if what one suffered is something no to be taken seriously “ (2001). Forgiveness is not forgetting evil acts nor condone offense or hatred but realising that when we hold on to horror and pain of every offense, it diminishes our lives. Furthermore, we should realize that we can’t change who offended us but can only change our physical, psychological and emotional response to the offense. Besides, I made a choice to accept the impact forgiveness had on me, and that has helped me regain my sense of wholeness and restore my inner light. It is crucial to remember and learn that forgiveness can’t be put off, but must be selfless and from the heart. We should learn to forgive from most of the things that life presented to us, from anger, loss, survival and even perseverance. For reasons best known to us, we may feel that it is difficult to forgive others who deeply hurt us. We insisted that, that person is not worthy of our forgiveness. That process of continuous crossing that bridge that held you over the pains you experienced, will lead you to a life of greater peace and acceptance. Furthermore, because I had continuously stepped on it, it has carried me and connected me to another side of life that I have discovered. If you’re