Massachusetts bank regulators approve plans by People's United Financial to acquire Danvers Bancorp; transaction valued at US$493M expected to close June 30

Michelle Rivera

BRIDGEPORT, Connecticut , June 28, 2011 (Associated Press) – Massachusetts bank regulators have cleared plans by People's United Financial Inc. to acquire Danvers Bancorp Inc., a transaction that's expected to close on Thursday.

The two banks on Tuesday jointly announced the approvals from Massachusetts' bank commissioner and board of bank incorporation. Federal regulators and Danvers Bancorp shareholders granted approval last month.

The state approvals, received Tuesday, came five months after People's United announced plans to acquire Danvers Bancorp in a stock-and-cash transaction valued at $493 million.

Under the agreement, Danvers Bancorp shareholders who elected to receive shares of People's United common stock rather than cash will get 1.624 shares for each share of Danvers Bancorp that they held.

Danvers Bancorp, with about $2.9 billion in total assets and 28 bank branches, is the parent company of Danversbank, based in Danvers, Mass.

The deal is expected to make People's United the seventh-largest bank in the greater Boston area. People's United is based in Bridgeport, Conn., and has $25 billion in assets and 341 branches in Connecticut, Vermont, New York, New Hampshire, Maine and Massachusetts.

Shares of People's United rose 28 cents, or 2.1 percent, to $13.14 in afternoon trading, while shares of Danvers Bancorp gained 17 cents, or 0.8 percent, to $21.42.

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