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CORRECTED-UPDATE 1-People's United Financial to buy United Financial Bancorp for $743 mln in stock

(Corrects deal value to $743 million from $759 mln in the headline)

July 15 (Reuters) - People's United Financial Inc said on Monday it would buy United Financial Bancorp Inc , the holding company for United Bank, for about $743 million in stock.

Shares of United Financial were up 4% at $14.58 per share in extended trading. Shareholders of United Financial will receive 0.875 shares of People's United stock for each share they hold, valuing the company at $14.53 on a per-share basis based on Monday's close.

People's United said it expects the deal to bolster its presence in the Central Connecticut and Western Massachusetts markets and add 7 cents to its earnings per share. The deal is expected to close in the fourth quarter.

Established in 1858 and headquartered in Hartford, Connecticut, United Bank has $7.3 billion in assets.

Keefe, Bruyette & Woods Inc was the financial adviser to People's United while Sandler O'Neill & Partners served as financial adviser to United Financial Bancorp. (Reporting by Sanjana Shivdas and Shanti S Nair in Bengaluru; Editing by Anil D'Silva)