TD Bank Financial Group set to buy TD Banknorth
TD Bank Financial Group (TDBFG) in Toronto has entered into an agreement to buy TD Banknorth Inc., a Portland, ME-based bank with offices in Worcester.
TDBFG will acquire all of the outstanding shares of common stock of TD Banknorth not currently owned by TDBFG for $32.33 per share in cash. This price represents a multiple of 22 times TD Banknorth's GAAP earnings for the twelve months ended Sept. 30, 2006, and the per share price is a 6.5 percent premium over the TD Banknorth closing price on Friday, Nov. 17.
The Board of Directors of TD Banknorth have unanimously approved the merger agreement, and the aggregate consideration payable under the terms of the proposal is anticipated to be approximately $3.2 billion.
Currently, TDBFG owns 130 million shares of common stock of TD Banknorth, or 57 percent of the outstanding shares of common stock. When the transaction is complete, TD Banknorth will become a wholly owned subsidiary of TDBFG.
TD Banknorth operates banking divisions in New York, New Jersey, Connecticut, Maine, Massachusetts, New Hampshire, Pennsylvania, and Vermont.
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