M&T Bank Corporation announced on Monday that it will acquire Hudson City Bancorp Inc. in a cash-and-stock deal valued at $3.7 billion, with lawyers at Wachtell, Lipton, Rosen & Katz and Sullivan & Cromwell advising.
The transaction works out to a 16 percent premium on Hudson Citys market value, according to The New York Times. Under the agreement, Hudson City will become a subsidiary of M&T and its shares will be valued at about 0.08 per M&T share, to be compensated either in cash or stock. M&T also states in a press release that it plans to pay off about $13 billion in Hudson Citys debts after the acquisition by liquidating its investments. The deal is subject to regulatory and shareholder approvals.
