Bank One Sells Consumer Finance Unit

Bank One Corp., scaling back its business to regain investor confidence, sold its consumer finance unit and $2.15-billion loan portfolio to Household International Inc. for an undisclosed amount in cash. Banc One Financial Services has 97 offices in 29 states. Prospect Heights, Ill.-based Household, the third-largest U.S. finance company with 1,400 branches, said about 200 of Banc One’s 1,100 employees will lose their jobs. The acquisition is expected to close at month’s end. Chicago-based Bank One is reviewing all of its businesses, including the possible sale of WingspanBank.com, a separate Internet-only bank it created in June with much fanfare. The bank is retrenching to rebuild investor confidence. Bank One shares have dropped 14% this year, lagging behind its peers. It trades at 8.9 times projected earnings, while other regional banks fetch on average 12 times earnings. Bank One shares closed unchanged at $27.13, and Household fell 13 cents to $37.75, both on the New York Stock Exchange.