Wednesday, November 3, 2010

M&T Bank Buys Scratch-And-Dent Wilmington Trust

For most of the year, M&T Bank (NYSE:MTB) has found itself the subject of unwelcomed speculation that the bank was an acquisition target of Banco Santander (NYSE:STD). With Allied Irish Banks' (NYSE:AIB) decision to publicly distribute its stake in MTB to shareholders, that speculation has largely died away, and in an interesting twist, M&T has become an opportunistic buyer of another bank. 

The Deal
M&T announced that it had reached an agreement to acquire Delaware-based Wilmington Trust (NYSE:WL) in an all-stock deal. In offering about 0.05 shares for each WL share, MTB management was valuing Wilmington at $3.84 a share on the basis of Friday's close. The fact that Wilmington reported earnings Monday morning and stated that tangible book value had fallen to $3.84 seems like a little more than just coincidence.


Please click the link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/MT-Bank-Buys-Scratch-And-Dent-Wilmington-Trust-MTB-WL-STD-AIB-PNC-WFC1103.aspx

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