PNC to Buy National City Corp.

The PNC Financial Services Group today announced it will acquire National City Corp. for $2.23 per share, or an aggregate fixed amount of about $5.2 billion in PNC stock.

Additionally $384 million of cash is payable to certain warrant holders. National City shareholders will be entitled to 0.0392 share of PNC common stock for each share of National City.

The deal will create the fifth-largest banking company by deposits in the United States.

PNC also said it will receive about $7.7 billion in capital from the federal government under the $750 billion bailout plan.

The acquisition follows National City's quarterly earnings report this week, which showed a quarterly loss of $5.2 billion, or $5.86 per share.

National City also said this week it will lay off 4,000 workers.

--Kim Hart