BUFFALO, N.Y. (AP) -- M&T Bank Corp. said Friday that as a result of regulatory concerns it will need more time to complete its $3.7 billion acquisition of Hudson City Bancorp Inc.
M&T originally announced plans to buy Hudson in August and filed applications with regulators in September. But the bank said Friday that the Federal Reserve is concerned about procedures related to its bank secrecy and anti-money-laundering compliance program.
Buffalo, N.Y.-based M&T said it has since begun efforts, including the hiring of an outside firm, in an attempt to address the Fed's concerns.
As a result of the time potentially needed to satisfy the Fed and meet any other related regulatory requirements, the banks said they plans to extend the date after which either party may elect to terminate the deal if it has not yet been completed by about five months to Jan. 31, 2014.
The other terms of the deal remain the same and both banks will go forward with shareholder votes later this month. Once all regulatory and shareholder approvals are received, the banks said they plan to close the deal as soon as possible.
Paramus, N.J.-based Hudson has 135 branch offices in New York, New Jersey and Connecticut. The combined company will include 870 branches located in states running from Connecticut to Virginia.
In midday trading, M&T shares fell $3.90, or 3.7 percent, to $101.02, while Hudson shares lost 45 cents, or 5.1 percent, to $8.32.
- Investment & Company Information