Dime Bancorp Inc. acquired North American Mortgage Company back in 1997, with the papers of the acquisition subsequently being shared for the public’s perusal.
In 1997, news of the acquisition of North American Mortgage Company made headlines. In the reporting of the acquisition of the company, reasons for the sale were not detailed. According to reports, Dime Bancorp Inc., the company that acquired North American Mortgage Company, had done so for an estimated $374 million, which was not only a considerable amount at the time, but is still a considerable amount currently.
It was believed that the acquisition of the company by Dime Bancorp would propel it and place it amongst the top companies in the sector. It was projected that the acquisition would move the company from the fifth-biggest thrift, and the biggest one in the North East region, and would propel it to the top 10 of the biggest mortgage banking companies in the world.
According to an article on the acquisition by the Wall Street Journal (WSJ), “In a press release Monday, Dime, New York’s biggest thrift and the fifth largest in the U.S., said it will exchange 1.37 common shares for each North American common share at the time of closing. Based on Dime’s closing price on June 20, the ratio represents a value of $26.03 per North American share.”
Additionally, “Its board approved a 6.9 million-share buyback, representing about 35 percent of the shares to be issued in the transaction. The shares will be bought over time in the open market or in privately negotiated transactions.”
The acquisition thereof concluded in the fourth quarter of the 1997/1998 financial year. Since then, North American Mortgage Company exists only by name and as a website which does not offer any services.