Mercantile to buy Va. bankMercantile Bankshares Corp...

BUSINESS DIGEST

March 30, 1994

Mercantile to buy Va. bank

Mercantile Bankshares Corp. announced yesterday that it has agreed to pay about $42 million for a small banking company in Fredericksburg, Va.

Mercantile, the parent of Mercantile-Safe Deposit & Trust Co., said it will buy the closely held Fredericksburg National Bancorp Inc., in a tax-free exchange of stock. Fredericksburg is the parent of the National Bank of Fredericksburg, a 129-year-old bank with $236 million in assets, seven branches and about 140 employees.

The deal, approved by both companies' boards of directors, calls for Mercantile to exchange 2.84 shares for one share of Fredericksburg. Fredericksburg, which has 788,112 shares, does not trade on public stock exchanges. At Mercantile's closing price yesterday of $18.625, down 50 cents from Monday, the deal was valued at $41.7 million.

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