By Lisa Kerner
Charlotte, N.C., Jan. 19 - Chittenden Corp. said it entered into a definitive merger agreement to acquire Merrill Merchants Bancshares, Inc. as well as its subsidiary, Merrill Merchants Bank, in a stock and cash transaction worth an estimated $111.4 million.
Under the agreement, Merrill shareholders can elect to receive $31.00 per share in cash or 1.02 shares of Chittenden common stock for each Merrill share they own. Total cash consideration is expected to be $44.57 million, and total Chittenden common stock consideration is estimated at 2.20 million shares.
Following the close of the transaction, expected in the second quarter of 2007, Merrill Merchants Bank will operate as a separate unit of Chittenden under the same Merrill name and senior management.
"Our board of directors carefully considered the interests of our shareholders and employees and determined Chittenden to be an ideal merger partner for us," Merrill Merchants Bancshares chief executive officer Edwin Clift said in a company news release.
Merrill is a Bangor, Maine-based bank.
Chittenden is a bank holding company located in Burlington, Vt.
| Acquirer: | Chittenden Corp.
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| Target: | Merrill Merchants Bancshares, Inc.
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| Payment per share: | $31.00 per share cash or 1.02 shares of Chittenden stock
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| Announcement date: | Jan. 19
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | Nasdaq: MERB; $26.92 on Jan. 18
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| Stock price for acquirer: | NYSE: CHZ; $29.77 on Jan. 18
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