M&T to Miss Hudson City Deal Deadline After Surprise DelaySonali Basak and Elizabeth Dexheimer
M&T Bank Corp. said that regulators won’t be able to complete a review of its proposed acquisition of Hudson City Bancorp by April 30, and that the deal will miss its latest deadline.
M&T was notified of the delay by the Federal Reserve late Friday, the Buffalo, New York-based bank said Monday in a statement. M&T said that it remains committed to the merger, while Hudson City said it needs time to review the deal.
“Given the unexpected notice of delay over a holiday weekend, the board of Hudson City needs more time to understand the nature and timing of the delay and its potential impact on the transaction before the board can determine its course of action,” Denis Salamone, Hudson City’s chief executive officer, said Monday in a separate statement. The lenders didn’t set a new deadline.
The agreement, announced in 2012 for $3.7 billion, has been repeatedly stalled amid a Federal Reserve review of M&T’s money-laundering controls. The delay has exacerbated a slowdown in dealmaking among the nation’s largest lenders.
Both banks had taken steps in recent weeks to prepare for completion of the deal. Paramus, New Jersey-based Hudson City notified participants in its employee stock-ownership and incentive-bonus plans last month that a blackout period was expected to begin on April 21, limiting transactions involving the shares. M&T had notified Hudson City shareholders of a deadline to decide between stock and cash payment in the merger. The election process has been suspended, M&T said in Monday’s statement.
“We continue to believe that M&T’s merger with Hudson City would be beneficial to both institutions,” M&T CEO Robert G. Wilmers said in the statement.