The combined company now has over $21 billion in assets and more than 300 bank branches in Connecticut, Massachusetts, Vermont, New Hampshire, Maine and New York. The six banks in the Chittenden group of banks will continue to do business under their existing names as subsidiaries of People’s United Bank. People’s United Bank will continue to operate in Connecticut and New York.
Based on the average closing price of People’s United common stock of $17.42 for the five-business-day period ending December 31, 2007, former Chittenden shareholders will receive, for each share of Chittenden common stock, either $35.64 or 2.04 shares of People’s United common stock, depending on the election made by that shareholder and the pro-ration procedures described in the merger agreement.
People’s United has also announced that John Dwight and Mark Richards, both former members of the Chittenden Corporation’s board of directors, had been appointed as members of the board of directors of People’s United Financial and People’s United Bank, effective immediately following the effective time of the merger.
Philip Sherringham, CFO, acting CEO and president of People’s United, said: This acquisition is an important step in achieving our goal of becoming the premier banking franchise in the Northeast. Independently, People’s United and Chittenden were both well-managed companies with strong balance sheets, a clear focus on customers and a legacy of community commitment. The new People’s United will have all that as well as greater lending capacity and an even wider range of products and services to offer individuals and businesses from White Plains, New York to Bangor, Maine.
