Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Banking Competition Likely to Heighten With M&T Bank Corporation (MTB) – Hudson City Bancorp, Inc. (HCBK) Merger

Page 1 of 2

In late August of 2012, Buffalo, New York-based M&T Bank Corporation (NYSE:MTBannounced its intention to purchase Jersey City, New Jersey-based Hudson City Bancorp, Inc. (NASDAQ:HCBK) in a cash-and-stock deal valued at approximately $3.7 billion. The deal now appears likely to go through during the second quarter of 2013. Although it is subject to a customary regulatory investigation as well as approval votes by shareholders from both companies, it appears unlikely that these obstacles will scuttle or delay the deal.

M&T Bank Corporation (NYSE:MTB)About M&T Bancorp and Hudson City Bancorp

M&T Bancorp is a major commercial, thrift, and savings bank that operates hundreds of branches in the northeastern United States and Southeastern Canada. The company provides commercial and consumer lending services, including development loans, mortgages, and various refinancing products. It also operates deposit accounts, savings vehicles, wealth management services, and ATMs for its retail customers. Although M&T may resell its mortgages on the open market, it was not materially affected by the U.S. housing crisis. In addition to its lending and deposit services, M&T Bancorp also issues credit cards and insurance products to its retail and business customers. In 2012, the company earned $953.4 million on $4.1 billion in gross revenues.

Hudson City Bancorp is a smaller thrift bank that operates primarily in the Greater New York City region. The company focuses its deposit-account and lending infrastructure on retail and small-business customers. Like M&T, it issues mortgages, auto loans, business loans, personal credit lines and other straightforward credit facilities. The company also maintains a wealth management division that caters to retirement investors and independently-wealthy clients. It has nearly 140 branches in New York, New Jersey, and Connecticut. With about 1,500 full-time employees on its payroll, Hudson City Bancorp reported 2012 earnings of $249.1 million on gross revenues of $770.4 million.

How the Deal Is Structured

Under the terms of the proposed merger, Hudson City Bancorp shareholders have two distinct choices. First, they can elect to receive per-share cash payments equivalent to the value of .08403 share of M&T stock over a 30-day averaging period. Alternatively, shareholders can elect to receive M&T shares in accordance with the same ratio. M&T has stated that the deal’s cash component cannot exceed 40 percent of its total value. In other words, some Hudson City shareholders may have to accept stock transfers against their will. In addition, this arrangement ties the final value of the deal to M&T’s stock price.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!