TD Banknorth goes private
TD Bank Financial Group (TDBFG) snapped up all outstanding shares of TD Banknorth common stock on Nov. 20 for $3.2 billion, or $32.33 per share in cash, in yet another instance of a merger taking a company private.
‘Tis the season of acquisitions, as TD Banknorth was acquired just days after a major deal in which Clear Channel Communi-cations was bought by private investors. TD Banknorth operates throughout Central Mass., including branches in Fitchburg, Worcester and Framingham, among others.
Prior to the transaction, TDBFG owned 130 million shares of common stock of TD Banknorth, representing approximately 57 percent of outstanding shares. The purchase price of the remaining stock of $32.33 per share is 22 times TD Banknorth’s GAAP earnings for the twelve months ended September 30, 2006, and 14.4 percent times TD Banknorth’s cash operating earnings for the year ended September 30, 2006.
The board of directors of TD Banknorth unanimously approved the merger agreement, but the deal still requires the affirmative vote of a majority of the outstanding shares of common stock of TD Bank-north
and a majority of outstanding TD Bank-north common shares not held by TDBFG or its affiliates. TD Banknorth will also schedule a special meeting for stockholders so as to obtain stockholder approval for the transaction.
Upon completion of the transaction, TD Banknorth will become a wholly owned subsidiary of TDBFG.
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