People’s buys Chittenden for $1.9B

In a deal that combines two of New England’s largest regional banks, Bridgeport-based People’s United Financial Inc. will acquire Chittenden Corp. of Burlington, Vt. for over $1 billion in cash and $850 million in stock. People’s, the holding company for People’s Bank, said the deal still requires approval by Chittenden shareholders and various regulatory agencies, but expects it to close in early 2008. People’s has about 160 branches throughout the region. Chittenden has about 133 New England branches through its various subsidiaries, which include Chittenden Bank, the Bank of Western Massachusetts and Flagship Bank and Trust Co.