Toronto Dominion To Purchase Hudson United

Toronto Dominion To Purchase Hudson United

Toronto-Dominion Bank has agreed to buy Hudson United Bancorp for $1.9 billion. The cash and stock offer is worth $42.78 per Hudson United share.

Hudson's acquisition by Canada's second largest lender, will increase its branch network in New England by about 50 percent, adding branches in New Jersey, Connecticut, Pennsylvania and more than 200 in the New York City area.

Hudson United is New Jersey's fourth biggest bank by assets. Last year the financial institution had approximately $9.1 billion in assets and a net income of $128 million.

Toronto-Dominion CEO, Edmund Clark, hopes U.S. expansion will offset slower earnings growth in Canada where bank mergers are prohibited.

Toronto Dominion will pay 51 percent of the offer in TD Banknorth shares, and 49 percent in cash. The cash portion will be financed through the sale of 29.6 million TD Banknorth shares to Toronto-Dominion at $31.79 a share.

The offer represents a 14 percent premium over yesterday's closing price for the U.S. bank.

The purchase will be TD Banknorth's largest takeover, after a $694 million acquisition of American Financial Holdings Inc. in August 2002.