Almost half of Chittenden shareholders chose stock as payment in merger deal

By Lisa Kerner

Charlotte, N.C., Jan. 8 - People's United Financial, Inc. announced the final merger consideration to be received by Chittenden Corp. shareholders in People's United's acquisition of Chittenden.

The merger was completed on Jan. 1, according to a company news release.

Based on final election results and applying proration provisions, Chittenden shareholders will receive the following merger consideration:

• $35.636 for each Chittenden share for which they made a valid cash election;

• $35.636 per share for 7.7% of the shares for which they made a valid stock election and 2.0457 shares of People's United common stock per share for 92.3% of the shares for which they made a valid stock election; and

• Chittenden shareholders who did not make a valid election will receive $35.636 per Chittenden share.

Of the 50,060,657 shares of Chittenden common stock outstanding immediately prior to the closing of the merger, holders of:

• 19,940,019 shares, or 39.8%, elected to receive cash;

• 23,449,673 shares, or 46.9%, elected to receive People's United common stock; and

• 6,670,965 shares, or 13.3%, did not make a valid election or did not express a preference.

The cash amount per share was based on the average closing price of People's United common stock of $17.42 for the five-day period ended Dec. 31.

The total consideration paid by People's United was some $1.8 billion, consisting of about $1.01 billion in cash and 44.3 million shares of common stock valued at $771 million.

It was previously reported that under the merger agreement, Chittenden shareholders could elect to receive cash or People's United common stock for a total value of about $37.00 per share.

People's United agreed on June 27, 2007 to acquire Chittenden, a Burlington, Vt., bank holding company.

People's United, located in Bridgeport, Conn., is the holding company of People's United Bank.

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