Bank of America to buy FleetBoston

BANK OF AMERICA has agreed to buy FleetBoston Financial Corp for $47 billion in stock, creating the second-biggest US bank and signalling a revival in corporate acquisitions.

Bank of America, based in Charlotte, North Carolina, will pay $45 a share for FleetBoston, 42% more than the Boston-based bank’s Friday closing price,

according to a joint statement. Shares of Bank of America dropped 10.2% yesterday. FleetBoston jumped as much as 26%.