Shares of People’s United Financial, Inc. (PBCT) are climbing more than 13% Monday morning following M&T Bank’s agreement to buy People’s United for about $7.6 billion in an all-stock transaction.
As per the deal, People’s United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share they own. Upon completion of the transaction, People’s United shareholders will own about 28% of the combined company.
The implied total transaction value based on closing prices on February 19, is nearly $7.6 billion.
The combined company will have assets worth about $200 billion and a network of more than 1,100 branches and over 2,000 ATMs across 12 states from Maine to Virginia and the District of Columbia.
PBCT touched a new high of $17.85 this morning.
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