Charles Schwab announced thecompletion of the 280-mln-dlr purchase from BankAmerica Co of
Charles Schwab and Co Inc and its holding company Charles
Schwab Corp.
    The leveraged buyout is being financed by a syndicate of
seven banks led by the Security Pacific National Bank unit of
Security Pacific Corp &lt;SPC>, the announcement said.
    Charles Schwab and Co is the nation's largest discount
brokerage firm.
    The Schwab announcement said BankAmerica received 175 mln
dlrs in cash, 50 mln of 10 pct senior subordinated debentures,
55 mln dlrs of nine pct junior subordinated debentures and the
right to receive 15 pct of the appreciated value of the common
equity of the new company over a maximum period of eight years.
    Security Pacific also acquired a stock appreciation right,
equal to 1.8 pct of the value of the new company's fully
diluted common stock, Schwab said.
    The right is exchangeable into warrants upon transfer to a
Security Pacific non-affiliate, Schwab said.
    BankAmerica originally acquired Schwab in 1983 for 57 mln
dlrs worth of BankAmerica common stock.
    The sale of the profitable discount brokerage firm back to
Charles Schwab was aimed at raising capital and was seen by
banking analysts as a means of heading off a hostile takeover
attempt by First Interstate Bancorp &lt;I>.
 Reuter
