NEW YORK, Aug. 27, 2012 (GLOBE NEWSWIRE) -- Morgan & Morgan, P.C. has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Hudson City Bancorp, Inc. ("Hudson City") (HCBK) in connection with their efforts to sell the company to M&T Bank Corporation. Under the proposed transaction, Hudson City/HCBK shareholders will receive 0.08403 of an M&T share for each HCBK share owned. Based upon M&T's Friday closing price, HCBK shareholders will receive approximately $7.22 per share, well below at least one analyst's estimated value of $7.50 per HCBK share. The definitive merger agreement involves a transaction with a total equity value of approximately $3.7 billion.
If you are an investor in Hudson City, and you want to learn more about the investigation, contact Peter Safirstein or Sheila Feerick at Morgan & Morgan, P.C., toll free (800) 732-5200 or via e-mail at hudsoncitycase@morgansecuritieslaw.com.
The investigation centers on whether Hudson City shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues Hudson City stock, and whether Hudson City's board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal. At least one analyst with Yahoo! Finance has estimated that the true inherent value of the stock is as high as $7.50 per share, well above the proposed price. The buyout includes Hudson City's 135 branch offices located in New York, New Jersey and Connecticut. The combined company will include 870 branches located in states running from Connecticut to Virginia. M&T, based in Buffalo, N.Y., has $80.8 billion in assets. Hudson City, based in Paramus, N.J., has $43.6 billion in assets. M&T said it expects to receive about $25 billion in deposits and $28 billion in loans from the buyout, prior to acquisition-related accounting adjustments. M&T says this will give it the fourth biggest deposit share in New Jersey.
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