8-KMaterial AgreementsExhibits & Filings

PNC FINANCIAL SERVICES GROUP, INC. 8-K Report, Material Agreement (Feb 22, 2006)

Filed February 22, 2006For Securities:PNC

Summary

This 8-K filing by PNC Financial Services Group, Inc. (PNC) on February 22, 2006, details material definitive agreements entered into on February 15, 2006, primarily concerning BlackRock, Inc. PNC has entered into a First Amendment to its Share Surrender Agreement and an Implementation and Stockholder Agreement, both related to BlackRock's acquisition of Merrill Lynch's investment management business. These agreements outline PNC's ongoing obligations regarding BlackRock shares for employee incentives and detail governance, voting rights, and transfer restrictions for PNC's stake in the newly formed entity, New BlackRock. Key investor implications involve the confirmation of PNC's continued commitment to its BlackRock holdings and the framework governing its future relationship with BlackRock post-merger. The filing also signifies the termination of certain existing shareholder agreements between PNC and BlackRock, streamlining their relationship as BlackRock undergoes a significant strategic transaction. Investors should note that the specifics of these transactions are further elaborated in the referenced exhibits, including the Transaction Agreement and Plan of Merger.

Key Highlights

  • 1PNC entered into a First Amendment to its Share Surrender Agreement with BlackRock, Inc.
  • 2PNC entered into an Implementation and Stockholder Agreement with BlackRock, Inc. and New Boise, Inc. (New BlackRock).
  • 3These agreements are in connection with BlackRock's acquisition of Merrill Lynch's investment management business.
  • 4The Share Surrender Agreement Amendment reaffirms PNC's obligation to provide BlackRock shares for employee incentive awards.
  • 5The Stockholder Agreement defines governance, voting rights, and transfer restrictions for PNC's shares in New BlackRock.
  • 6PNC has agreed to changes in the BlackRock board of directors and limits on acquiring additional New BlackRock shares.
  • 7Existing shareholder agreements between PNC and BlackRock are to be terminated prior to the transaction closing.

Frequently Asked Questions

This filing announces PNC Financial Services Group, Inc.'s entry into material definitive agreements related to BlackRock, Inc.'s acquisition of Merrill Lynch's investment management business. It outlines amendments to existing agreements and new governance structures for PNC's stake in the resulting entity.

PNC reaffirms its commitment to making BlackRock shares available for employee incentive awards and has agreed to certain governance changes, including limits on its ability to acquire additional shares in the new BlackRock entity.

The agreements establish the framework for PNC's continued involvement with BlackRock, particularly concerning its shareholdings and governance rights in the newly formed entity, New BlackRock. It also involves the termination of prior shareholder agreements.

Merrill Lynch will acquire BlackRock's investment management business and will receive 65 million shares of New BlackRock's capital stock, with stipulations to ensure they hold no more than 45% of the voting power and 49.8% of the total issued and outstanding capital stock of New BlackRock.