Hudson United Bancorp Reviews Expected Impact of Dime-Washington Mutual Merger Agreement On Hudson United and Announces Extension of Stock Repurchase Program
MAHWAH, N.J.--(BUSINESS WIRE)--June 26, 2001--Hudson United Bancorp (NYSE:HU) today announced the expected impact on Hudson United of the recently announced merger agreement between Dime Bancorp Inc. (NYSE:DME) and Washington Mutual Inc. (NYSE:WM).
Pursuant to the termination agreement between Hudson United and Dime dated April 28, 2000, Dime will be required to pay Hudson $92 million upon the closing of Washington Mutual's acquisition of Dime. Of the $92 million, $15 million becomes due on June 27, 2001 and that amount was recognized by Hudson during the third quarter of 2000 as it represented the minimum amount which Dime was required to pay Hudson under the termination agreement. The remaining $77 million is payable upon the closing of the Washington Mutual/Dime merger and Hudson expects to recognize that amount as income when the merger closes.
Hudson expects to incur expenses of approximately $12 million, including financial advisor fees, acceleration of retention awards and other expenses, which are contingent upon the closing of the Washington Mutual/Dime merger. Hudson expects to recognize those expenses upon its receipt of the final termination fee payment.
The net final payment of approximately $65 million represents about $45.5 million on an after tax basis. The funds will supplement capital ratios and will be available to repurchase stock, retire debt or for other corporate purposes.
Hudson United Bancorp also announced that its Board had extended the Company's stock repurchase program until December 31, 2002 and during such period authorized the repurchase of 4.7 million shares which represents approximately 10 percent of the Company's outstanding shares. Under the program the Company may repurchase shares from time to time in the open market or in privately negotiated transactions at generally prevailing market prices and the shares may be used for stock dividends, employee stock programs and other corporate purposes.
Hudson United Bancorp is the multi-state bank holding company for Hudson United Bank, which has approximately 200 offices in New Jersey, New York, Connecticut and Pennsylvania. |
