By Frank McGurty
NEW YORK, April 12 M&T Bank Corp's
proposed purchase of Hudson City Bancorp Inc will
probably take more time to close than previously expected
because of U.S. regulatory concerns over anti-money-laundering
procedures, the banks said on Friday.
Buffalo, New York-based M&T has hired an outside consultant
to help it address the concerns raised by regulators at the U.S.
Federal Reserve, it said in a statement. It did not immediately
identify the consultant.
Shares of M&T fell nearly 4 percent to $100.99 on Friday
morning, while Paramus, New Jersey-based Hudson City's stock
dropped 5.2 percent to $8.31.
When the deal was announced in August, it was worth $7.22
for each Hudson City share, or a total of about $3.7 billion.
At the time, the banks said they expected the closing in the
second quarter of 2013. Given the delay, they have extended the
date after which either could abandon the proposed acquisition
to Jan. 31 from Aug. 27.
M&T, which has Warren Buffett's Berkshire Hathaway Inc
as a major shareholder, aims to expand its presence on
the U.S. East Coast by buying Hudson City, which has branches in
New Jersey and other parts of the New York City area.
The deal, which would create a combined network of about 870
branches, is expected to boost M&T's earnings as soon as it
The purchase price and exchange ratio announced in August
will remain the same, the Friday statement said, and both
companies will proceed with shareholder meetings scheduled for
later this month to vote on the deal.
Hudson City shareholders are to receive M&T shares for 60
percent of the purchase, plus cash for other 40 percent. The
total value per Hudson City share is fixed at 0.08403 M&T share.
The amount of cash will increase or decrease with the price
of M&T stock until the deal's closing.