Breaking News
FONT-SIZE Plus   Neg
Share SHARE

M&T Bank, Hudson City Merger Delayed Due To Regulatory Concerns; Stock Down

RELATED NEWS
Trade MTB now with 

M&T Bank Corp. (MTB: Quote) said Friday it would need more time to close its $3.7 billion proposed acquisition of Hudson City Bancorp Inc. (HCBK: Quote) due to anti-money laundering and other concerns raised by the Federal Reserve.

Following the news, shares of M&T lost 4 percent in afternoon trade and Hudson City stock slid 5 percent.

M&T said the Federal Reserve has raised certain regulatory concerns with the bank's procedures, systems and processes relating to M&T Bank Secrecy Act and anti-money-laundering compliance program.

M&T, which filed its applications with regulators in September 2012, said it has commenced a major initiative to address the regulatory concerns.

M&T said that owing to the potential time needed to satisfy the regulatory concerns and other potential requirements, the closure of the deal will be delayed.

M&T and Hudson City plan to extend the date after which either party may terminate the deal if it has not yet been completed from August 27, 2013 to January 31, 2014. The companies said there is no assurance that the deal will be completed by that date.

The two companies said that other terms of the deal remain unchanged, and that they will proceed with their shareholders meetings later this month to consider the deal.

In August, Buffalo, New-York M&T agreed to acquire Hudson City in a cash and stock deal valued at about $3.7 billion. If the deal consummates, M&T will acquire New Jersey-based Hudson City's network of 135 branch offices, and the combined company will operate a network of 870 branches that will stretch from Connecticut to Virginia.

M&T expects to gain about $25 billion in deposits and $28 billion in loans from the merger, and upon the merger, M&T expects to repay about $13 billion of Hudson City's long-term borrowings.

MTB is trading at $100.68, down 4.04%, on a volume of 1.5 million shares on the New York Stock Exchange.

Hudson City is trading at $8.31, down 5.27%, on a volume of 12.3 million shares on the Nasdaq.

Register
To receive FREE breaking news email alerts for M&T Bank Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The terrorist group known as the Islamic State in Iraq and the Levant (ISIL) is earning about $1 million each day by smuggling oil out of the Middle East, according to the US Treasury Department. Speaking at the Carnegie Endowment for International Peace on Thursday, Under Secretary for Terrorism and Financial Intelligence David Cohen said "ISIL has raised a significant amount of its money - many The U.K. economy grew at a slower pace in the third quarter in the face of rising uncertainty stemming from global economic conditions, preliminary estimates from the Office for National Statistics Office showed Friday. Gross domestic product climbed 0.7 percent from the second quarter, when it grew 0.9 percent. German consumer climate is set to improve slightly in November, ending the downward trend, as income expectations among households strengthened on the back of the strong labor market situation, survey data revealed Friday.The forward-looking consumer confidence index rose slightly to 8.5 in November from 8.4 in October.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.