Banking, finance, and taxes
A Bank Merger With M&T and Provident (MTB, PBKS)
Published:
Last Updated:
M&T Bank Corporation (NYSE: MTB) has agreed to acquire Provident Bankshares Corporation (NASDAQ: PBKS) for roughly $401 million in stock.
On the surface, this is a huge premium. Provident shareholders willreceive 0.171625 shares of M&T common stock in exchange for eachshare of Provident common stock. Based on M&T’s closing stockprice of $61.18 on December 16, 2008, the deal is valued at $10.50 perProvident share. The purchase price represents a 3.7% premium to coredeposits and 1.4x tangible book value.
M&T has $65.2 billion in assets, and has operations in theBaltimore-Washington metropolitan area. Provident is based in Baltimoreand has roughly $6.4 billion in assets. M&T also expects to gainapproximately $4.6 billion in deposits and $4.3 billion in loans fromthe merger.
In addition, M&T willget to add 143 Provident branch offices and 198 ATMs located primarilyin Maryland and Virginia. This will then add on to M&T’s existing177 branches and 545 ATMs in the same region. When combined withM&T’s existing Mid-Atlantic franchise, the merger will give M&Tthe second-largest deposit share in Maryland and will triple itspresence in Virginia.
Join our open email distribution list to hear about other mergers, Warren Buffett activities, IPO’s, secondary offerings, private placements, special situations, rumors, and more.
Jon C. Ogg
December 19, 2008
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
