Washington Mutual to buy Providian NEW YORK (Reuters) - Washington Mutual Inc. (WM.N: Quote , Profile , Research ) , the largest U.S. savings and loan, on Monday said it agreed to buy Providian Financial Corp. (PVN.N: Quote , Profile , Research ) for $6.45 billion, expanding its focus on middle-market consumers. Providian shareholders will receive 0.45 of a Washington Mutual share for each of their shares. The transaction values Providian at $18.71 per share, a 4.2 percent premium over Providian's $17.96 Friday closing price on the New York Stock Exchange. Eighty-nine percent of the purchase price will be paid in stock, and 11 percent in cash. Providian, a large credit card issuer, has repositioned itself in recent years after a period of rapid growth in the late 1990s, followed by big losses when the economy soured. It once catered to consumers with spotty credit histories, but has raised its lending standards. Seattle-based Washington Mutual said Providian will become the company's fourth major business unit, and will continue to operate out of San Francisco. Washington Mutual plans to retain Providian's management and infrastructure. Joseph Saunders, Providian's chairman and chief executive, will continue to run the credit card business and report to Steve Rotella, Washington Mutual's chief operating officer. Lehman Brothers Inc., Morgan Stanley and the law firm Simpson Thacher & Bartlett advised Washington Mutual on the transaction. Goldman Sachs & Co., Citigroup Global Markets Inc. and the law firm Wachtell, Lipton, Rosen & Katz advised Providian. Washington Mutual shares closed Friday at $41.57 on the Big Board. (Additional reporting by Edward Tobin) Quelle "Washington Mutual to buy Providian" : reuters.com Main page for "Washington Mutual to buy Providian"