Credit Card Grrl

The 411 on the marketing side of the credit card industry

20050630

Bank of America to acquire MBNA

- Long live the monoline, the monoline is dead!
- THIS should make things interesting in the credit card marketing landscape. Stay tuned for your BofAMBNAAmex card ...

Jun 30, 2005

Bank of America Corporation today announced a definitive agreement to acquire MBNA Corporation. The acquisition combines the country's largest domestic bank with a leading provider of credit card and payment products, significantly enhancing Bank of America's product mix and customer reach.

Bank of America will become one of the largest card issuers in the United States, with $143 billion in managed outstanding balances and 40 million active accounts, upon completion of the transaction. Bank of America will add more than 20 million new customer accounts as well as affinity relationships with more than 5,000 partner organizations and financial institutions.

The acquisition dramatically increases the bank's opportunity to deepen customer relationships across the full breadth of the company by delivering innovative deposit, lending and investment products and services to MBNA's customer base.

MBNA at a Glance

More than 20 million customers
Relationships with 5,000 affinity card partners
$27 billion in market capitalization
Diversified consumer and small business lending company
22 years old - 14 as a public company
Superior credit performance
Operates in 5 countries

"Today's announcement is not only about the creation of one of the world's largest card providers. That is compelling in and of itself," said Bank of America Chairman and Chief Executive Officer Kenneth D. Lewis. "But it's really a much larger story about two companies with complementary strengths. The result will be the country's top retailer of financial services with the size and scale to drive distribution and marketing efficiencies."

The deal is expected to close in the fourth quarter of 2005. Under terms of the agreement, MBNA stockholders will receive 0.5009 shares of Bank of America common stock for each of their shares plus a cash component of $4.125 per share. Based on the share price of Bank of America at the close of business on June 28, 2005, the transaction is valued at $35 billion in total or $27.50 per MBNA share.

Bank of America expects to achieve overall expense efficiencies of $850 million after-tax, which would be fully realized in 2007, and anticipates a restructuring charge of $1.25 billion after-tax. Cost reductions will come from a range of sources, including the reduction of 6,000 jobs.

Additional savings will be achieved through the elimination of overlapping technology, vendor leverage, and marketing expense.

Upon completion of the acquisition, Bank of America will be one of the leading worldwide payments services companies and issuers of credit, debit, and prepaid cards based on total purchase volume. The deal would today make Bank of America the fourth most profitable company in the world.

"This acquisition makes strategic sense for our combined customers and shareholders. It provides us access to MBNA's attractive portfolio as well as their leading product, service and marketing capabilities," Lewis said. "We can now deepen existing and future customer relationships with differentiated capabilities to exceed customer expectations and grow market share. This merger also provides us with an attractive foothold in Canada, the United Kingdom, Spain and Ireland."

Bruce L. Hammonds, 57, CEO and president of MBNA Corporation, will become CEO and president of Bank of America Card Services and report to Liam E. McGee, 50, president, Bank of America Global Consumer and Small Business Banking. Hammonds will remain in Wilmington, Del., and be part of Bank of America's Risk & Capital Committee, which guides the company's strategic direction.

"The merger will create one of the largest credit card portfolios and will give the combined company access to new marketing channels, customers, products and opportunities for further expansion," Hammonds said. "Both companies benefit as cross-sell opportunities exist to sell MBNA products to Bank of America customers and Bank of America products to MBNA customers."

Significant capital strength

The company will maintain significant capital strength and earnings diversity. About 55 percent of earnings will come from global consumer and small business banking; 17 percent from global business and financial services; 11 percent from global capital markets and investment banking and 10 percent from global wealth and investment management.

"For our shareholders, the Bank of America and MBNA combination yields a diverse business mix less dependent on market-sensitive businesses," Lewis said. "The financial strength and cash flow generation of the combined entity should provide significant resources to support future growth."

Last week Bank of America increased its quarterly dividend 11 percent to 50 cents per share. The current dividend yield is approximately 4 percent. The company will continue to focus on a strong dividend for shareholders. Additionally, Bank of America's strong cash flow and capital position, strengthened by this transaction, should enable the company to continue repurchasing shares for the foreseeable future.

Commitment to Neighborhood Excellence

Bank of America, a leader in corporate citizenship and philanthropy, intends to build upon its previously announced 10-year, $750 billion community development goal to include a specific community development lending and investment goal for Delaware. The specifics of this goal will be determined based on future dialogue with Delaware community and civic leaders. With MBNA's $60 million annual charitable giving, Bank of America, a worldwide leader in corporate philanthropy, expects to provide more than $200 million in annual giving as a result of this combination.

Additional information

Pursuant to the merger agreement, on the effective date of the merger, Frank P. Bramble, Sr., a vice chairman of MBNA, will be appointed to the Bank of America Board of Directors.

The agreement has been approved by both boards of directors and is subject to approval by regulators and MBNA shareholders. Bank of America was advised in the transaction by Keefe, Bruyette & Woods. Legal counsel was provided to Bank of America by Cleary Gottlieb Steen & Hamilton. MBNA was advised by UBS Securities and Joseph Perella. Legal counsel was provided to MBNA by Wachtell, Lipton, Rosen & Katz.

MBNA
MBNA (NYSE: KRB), the largest independent credit card lender in the world and a recognized leader in affinity marketing, is an international financial services company providing lending, deposit, and credit insurance products and services. MBNA credit cards and related products and services are endorsed by more than 5,000 organizations worldwide. For more information, visit the company's web site.

Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving 33 million consumer relationships with more than 5,800 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than 13 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 150 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 85 percent of th> e Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Notes

Senior management will present details of the merger at 9:30 a.m. in the Hilton room of the Waldorf Astoria Hotel in New York City. The presentation will be available on a webcast on the Bank of America website.

Senior management will meet with the news media at 11 a.m. in the same location. The press conference will be accessible by calling 877.707.9631, or 785.832.0201 with access code 713300.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation and MBNA Corporation. The forward-looking statements involve certain risks and uncertainties.

Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following:

1) changes in economic conditions; 2) changes in the interest rate environment; 3) changes in foreign exchange rates; 4) adverse movements and volatility in debt and equity capital markets; 5) changes in market rates and prices; 6) political conditions and related actions by the United States military abroad which may adversely affect the company's businesses and economic conditions as a whole; 7) liabilities resulting from litigation and regulatory investigations; 8) changes in domestic or foreign tax laws, rules and regulations as well as IRS or other governmental agencies' interpretations thereof; 9) various monetary and fiscal policies and regulations; 10) increased competition; 11) ability to grow core businesses; 12) ability to develop and introduce new banking-related products, services and enhancements and gain market acceptance of such products; 13) mergers and acquisitions and their integration into the company; 14) decisions to downsize, sell or close units or otherwise change the business mix of the company; and 15) management's ability to manage these and other risks. For further information regarding either company, please read Bank of America and MBNA reports filed with the SEC.

Additional Information About This Transaction

Bank of America Corporation will file a Form S-4, MBNA will file a Proxy Statement and both companies will file other relevant documents regarding this transaction with the Securities and Exchange Commission (the "SEC"). MBNA will mail the Proxy Statement/Prospectus to its stockholders. These documents will contain important information about the transaction, and Bank of America and MBNA urge you to read these documents when they become available.

You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC's website. You may also obtain these documents, free of charge, from Bank of America's website under the tab "About Bank of America" and then under the heading "investor relations" and then under the item "Complete SEC Documents". You may also obtain these documents, free of charge, from MBNA's website under the tab "About MBNA" and then under the heading "Investor Relations" and then under the item "SEC Filings."

Participants in This Transaction

Bank of America Corporation and MBNA Corporation and their respective directors and executive officers may be deemed participants in the solicitation of proxies from stockholders in connection with this transaction. Information about the directors and executive officers of Bank of America and MBNA and information about other persons who may be deemed participants in this transaction will be included in the Proxy Statement/Prospectus. You can find information about Bank of America's
executive officers and directors in the Registrant's definitive proxy statement filed with the SEC on March 28, 2005. You can find information about MBNA's executive officers and directors in their definitive proxy statement filed with the SEC on March 15, 2005. You can obtain free copies of these documents from the Registrant or MBNA using the contact information above.

20050627

Discover Changes

From a subaffiliate network ...

We want to inform you of numerous changes that will be going into effect as of July 1st for Discover Card. The changes for the Platinum products will only require copy changes, but the changes for The Miles Card will have both copy and banner changes.

Below is a quick summary of what changes will be occurring on July 1st:

All Platinum Card Products including (Platinum, Flag, Clear, Gas, Wildlife)

1) Increase the "As Low As" pricing for all Platinum products from 8.99% to 9.99%

2) Increase the "Intro APR Period" for all Platinum products to 10 Months

For The Miles Card from Discover

1) Decrease the "Standard APR" from 13.99% to 9.99%

2) Increase the "Intro APR Period" to 10 Months

3) Change the "Intro APR Applied Towards" to include both Purchases & Balance Transfers

4) Decrease the "Annual Fee" $0

Please be sure to have all these changes made (especially the "As Low As" Intro APR increase) on July 1st. All updated creatives and copy will be in your account on June 30. We will be conducting an audit at the beginning of July to be sure that these changes have taken place. Please let me know if you have any questions or concerns.


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Please note that any links directly to card product offers are provided for informational purposes only. Any descriptions within this post about an offer may not necessarily align with the offer to which these links connect.

20050610

Citi credit cards

Sunspot just sent me a big ole' email with a word document and an excel spreadsheet for all the Citi credit card offers.

AT&T Universal Rewards Card

· Earn up to 5 times the points on eligible purchases
o 5 ThankYou points for every dollar spent at supermarkets, drugstores and gas stations
o 5 ThankYou points for every dollar spent on eligible AT&T products and services
o 1 ThankYou point for every dollar spent on other purchases
· Save on the phone services you use every day
o 2 free directory assistance inquiries per month
o Up to 30 free minutes per month anytime, anywhere
· Enjoy fraud protection
o Wireless phone loss & theft insurance reimbursement for replacement coverage
o Citi® Identity Theft Solutions
o Fraud Early Warning
o $0 Liability Protection on unauthorized purchases
· 0% on balance transfers for 12 months
· Standard Purchase APR – 10.58%
· No Annual fee


AT&T Universal Platinum Card

· Save on the phone services you use every day
o 2 free directory assistance inquiries per month
o Up to 30 free minutes per month anytime, anywhere
· Enjoy fraud protection
o Wireless phone loss & theft insurance reimbursement for replacement coverage
o Citi® Identity Theft Solutions
o Fraud Early Warning
o $0 Liability Protection on unauthorized purchases
· 0% on balance transfers for 12 months
· Standard Purchase APR – 9.58%
· No Annual fee

Citibusiness® / AAdvantage® Visa®

· Earn 15,000 Bonus Miles after first purchase
· Earn 1 AAdvantage mile for every dollar you spend on purchases up to 150,000 miles per year
· No blackout dates and miles that may never expire
· Business-size credit line
· Quarterly and Annual Account Summaries
· Free additional cards for employees with credit limits you set
· Annual Fee - $75.00
· Standard APR – 15.99%


Citi® Platinum Select® / AAdvantage® World MasterCard

· Earn 12,500 Bonus Miles after first purchase
· Earn 1 AAdvantage mile for every dollar spent on eligible purchases – up to 100, 000 miles per year
· No pre-set spending limit
· No blackout dates and miles may never expire
· $0 Liability on unauthorized charges
· Redeem AAdvantage miles with over 20 of the world’s top airlines, major car rental companies and hundreds of luxurious hotels worldwide.
· Reduced Mileage Awards – 7,500 fewer miles to select destinations.
· Annual Fee - $85.00
· Standard APR – 15.99%

Citi® Dividend Platinum Select® for College Students

· Earn 5% cash back on purchases at supermarkets, drug stores, and gas stations
· Earn 1% cash back on all other purchases
· Build your credit history
· $0 Liability on unauthorized charges
· 0% APR on balance transfers and cash advances for 6 months
· No annual fee
· Standard Purchase APR – 15.99%
· Citi® Indentity Theft Solutions

Citi® Dividend Platinum Select

· Earn 5% cash back on purchases at supermarkets, drug stores, and gas stations
· Earn 1% cash back on all other purchases
· Earn $5 cash back for every individual balance transfer transaction of $1500 or more
· $0 Liability on unauthorized charges
· 0% APR on balance transfers for 12 months
· No annual fee
· Standard Purchase APR – 11.49%
· Citi® Indentity Theft Solutions

Citi® Driver’s Edge® Platinum Select®

· Earn 6% rebates on purchases at supermarkets, drugstores, and gas stations for 12 months, 3% after that
· Earn 1% rebates on other purchases
· Earn rebates for the miles you drive
· Redeem rebates toward the purchase or lease of any new or used vehicle
· Redeem rebates toward service, repairs, or maintenance performed on your vehicle
· $0 Liability on unauthorized charges
· No annual fee
· Standard APR – 11.99%
· Balance Transfer Offer – 0% APR for 12 months

Citi PremierPass Card

· 5,000 bonus points after first purchase and first year fee waived
· Get 1 point for every 3 miles you fly on any airline – up to 50,000 points per year
· Earn points for miles flown by friends and family when you buy their tickets with card
· Get 1 point for every dollar you spend on all other purchases
· Earn up to 100,000 total points per year
· Points never expire as long as you make 1 purchase every 3 years
· Redeem for travel on any airline, with no blackout dates
· Redeem for gift certificates, merchandise, and more through the ThankYou Redemptions Network
· Free quarterly & annual account summaries
· No pre-set spending limit
· No annual fee
· Standard APR – 11.99%
· Balance Transfer Offer – 0% APR for 12 months

Citi PremierPass – Elite Level Card

· 15,000 bonus points after first purchase and first year fee waived
· Get 1 point for every mile you fly on any airline – up to 100,000 points per year
· Get 2 points for every dollar spent at supermarkets, drug stores, gas stations, commuter transportation and parking merchants
· Get 1 point for every dollar you spend on all other purchases
· Earn up to 200,000 total points per year
· Points never expire as long as you make 1 purchase every 3 years
· Redeem for travel on any airline, with no blackout dates
· Earn points for miles flown by friends and family when you buy their ticket with card
· Unlimited companion travel
· No pre-set spending limit
· Annual Fee - $75.00
· Standard APR – 11.99%
· Balance Transfer Offer – 0% APR for 12 months

Citi®Bronze / AAdvantage® Mastercard®

· 5,000 Bonus Miles after first purchase
· Earn 1 AAdvantage mile for every $2 dollars you spend on eligible purchase – up to 25,000 miles per year
· No blackout dates for AAdvantange award travel on American Airlines, American Eagle & AmericanConnections carriers.
· AAdvantage miles may never expire
· No Annual fee
· Standard APR 15.99%

Citibusiness® Card with ThankYou Network®

· 7,500 bonus points after first purchase
· 1 ThankYou Point for every dollar spent on purchases and 3 ThankYou Points on eligible business purchases
· Free quarterly and annual account summaries
· Free unlimited additional cards for employees with credit limits you set
· Ability to check card balances, pay your statement and get cash at Citibank ATMs and branches
· Intro APR – 0% APR for 6 months
· Standard APR – 11.99%
· No annual fee

Citibusiness® Card

· 0% APR on balance transfers for 12 months
· No annual fee
· Business-size credit line
· Free additional cards for employees with credit limits you set
· Quarterly and annual account summaries
· Standard APR – 10.99%

Citi® Driver’s Edge Card for College Students

· Earn 3% rebates on purchases at supermarkets, drugstores, and gas stations
· Earn 1% rebates on other purchases
· Earn rebates towards any car, new or used
· Build your credit history
· $0 liability on unauthorized purchases
· 0% APR for 6 months on purchases, cash advances, balance transfer
· No annual fee
· Standard Purchase APR – 15.99 APR

Citi® Platinum Select® Card for College Students

· Citi® Indentity Theft Solutions
· $0 Liability on unauthorized purchases
· No minimum income or co-signer required
· No annual fee
· 0% APR on balance transfers, cash advances and purchases for 6 months
· Standard APR – 15.99%

Citi® Platinum Select® Card

· Citi® Indentity Theft Solutions
· $0 Liability on unauthorized purchases
· No annual fee
· 0% APR on balance transfers and purchases for 12 months
· Standard APR – 10.24%

Citi® Diamond Preferred Rewards Card

· 5,000 bonus ThankYou Points after your first purchase, redeemable for a $50 gift card
· 5 reward points for every $1 spent on purchases at supermarkets, drugstores, and gas stations
· 1 reward point for every dollar spent on other purchases
· Earn to 75,000 ThankYou Points per year
· Citi® Identity Theft Solutions
· Price Protection Program
· $0 Liability on unauthorized solutions
· No annual fee
· 0% APR on Balance Transfers for 12 months
· Standard Purchase APR – 10.99%

Hilton HHonors® Visa Card

· Receive 15,000 Hilton HHonors bonus points after first purchase. Equals to 2 night’s stays at participating Hilton Hotels.
· 3 HHonors bonus points for every dollar spent using card, plus 2 HHonors bonus points for each dollar spent on net purchases
· Double Dip and receive both Hilton HHonor points and airline miles for the same stay.
· Complimentary Silver VIP membership for first year of card membership
· 2.99% intro APR on purchases and balance transfers for 6 months
· No annual fee
· Standard Purchase APR – 15.99%

Citi® Home Rebate Platinum Select® MasterCard®

· Earn 1% rebates on purchases to apply toward your outstanding mortgage principal
· No limit on the amount of rebates you can earn per year
· Works with any mortgage
· $0 liability for unauthorized charges – even when shopping online
· Fraud Early Warning, Lost Wallet® Service, and NOW Citi® Identity Theft Solutions
· No annual fee
· Standard APR – 12.99%
· Balance Transfer Offer – 0% APR for 12 months

Citi® mtvU™ Platinum Select® Visa® Card for College Students

· 0% APR on Cash Advances for 6 months
· Earn up to 2,000 Thank you Points twice a year for having a good GPA.
· 25 points per month when you pay on time and don’t go over your credit limit.
· 5 points per dollar spent at restaurants, bookstores, record stores, movie theaters, and video rental stores.
· 1 point for every dollar you spend on all other purchases
· Earn up to 75,000 ThankYou Points per calendar year.
· Redeem for gift cards, merchandise, travel, and more with ThankYou Redemptions Network
· 10% discount at mtvshop.mtv.com and the MTV Store in New York City
· Standard Purchase APR – 15.99%
· No annual fee

Citi® Upromise® Card

· Get 1% in college savings from Citi everywhere you shop – up to $300 per year
· 10% college savings on many grocery and drugstore purchases at participating stores
· 2% college savings on gas at Exxon and Mobil locations
· Citi® Indentity Theft Solutions and Online Fraud Protection
· $0 liability on unauthorized charges
· No annual fee
· Standard APR – 11.99%
· Balance Transfer Offer – 0% APR for 12 months



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Please note that any links directly to card product offers are provided for informational purposes only. Any descriptions within this post about an offer may not necessarily align with the offer to which these links connect.