By Lisa Kerner
Charlotte, N.C., June 27 - People's United Financial, Inc. agreed to acquire Chittenden Corp. in a stock and cash deal valued at $1.9 billion.
The boards of both companies unanimously approved a definitive agreement giving Chittenden shareholders the right to receive cash or People's United common stock for a total value of approximately $37.00 per share.
A $65 million termination fee is included in the agreement, according to a form 8-K filing with the Securities and Exchange Commission.
The acquisition is expected to close in the first quarter of 2008.
"This transaction delivers on key commitments we made to investors in the course of our second-step conversion," People's United Bank chairman, president and chief executive officer John Klein stated in a company news release. The $3.44 billion second-step conversion was completed in April.
"We promised to make acquisitions in contiguous or near-contiguous markets; acquire banks with similar balance sheets and operating models to ours; and undertake a transaction that is accretive to EPS and has an internal rate of return that exceeds our cost of capital."
Chittenden is a bank holding company based in Burlington, Vt.
People's United, located in Bridgeport, Conn., is the holding company of People's United Bank.
| Acquirer: | People's United Financial, Inc.
|
| Target: | Chittenden Corp.
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| Transaction total: | $1.9 billion
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| Price per share: | $37.00
|
| Termination fee: | $65 million
|
| Announcement date: | June 27
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| Expected closing: | First quarter of 2008
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| Stock price for acquirer: | Nasdaq: PBCT: $18.71 on June 26
|
| Stock price for target: | NYSE: CHZ: $28.24 on June 26
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