M&T Bank to Buy People's United in All-Stock Deal

M&T Bank (NYSE: MTB) plans to acquire People's United Financial (NASDAQ: PBCT) in another big deal among consolidating regional banks.

It will be an all-stock transaction worth $7.6 billion, valuing shares of People's United at $17.70, or 164% of tangible book value. The purchase price represents a nearly 13% premium over the closing price of People's shares last Friday.

The deal will bring together two of the largest regional banks headquartered in the Northeast (M&T is based in Buffalo, New York, and People's United in Bridgeport, Connecticut) and create a bank with roughly $200 billion in assets.

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Source Fool.com