North Fork Bancorp Abandons $2.3 Billion Hostile Bid for Dime Bancorp
North Fork Bancorp Inc.'s planned takeover of Dime Bancorp Inc. has stalled, with Wall Street experts predicting the company will drop its $2.3 billion hostile bid as a result of dwindling shareholder support and Dime's refusal to engage in negotiations. Despite this, North Fork may pursue a proxy fight against Dime next year, seeking to gain control over the New York-based bank. Meanwhile, North Fork is reportedly planning to announce a large stock buyback following the abandoned takeover bid.
Key Takeaways:
- North Fork Bancorp Inc. is expected to drop its $2.3 billion hostile bid for Dime Bancorp Inc. due to a lack of shareholder enthusiasm and Dime's refusal to negotiate.
- Wall Street experts predict North Fork will pursue a proxy fight against Dime next year to gain control over the bank.
- A decision by North Fork to drop the bid would be a significant victory for Dime, which has been aggressively fighting off the takeover.
- North Fork has been seeking to acquire Dime to expand its presence in the New York City market.
- Dime Bancorp operates 127 bank branches, mostly in the New York City area.
- North Fork's board of directors is scheduled to meet this morning to decide whether to extend the cash-and-stock offer, which is set to expire on Friday.
- North Fork chairman John Kanas confirmed the board meeting but declined to comment on his recommendation to the board.
- North Fork is reportedly planning to announce a large stock buyback following the abandoned takeover bid.
Statistics:
- $2.3 billion: The value of North Fork Bancorp's planned takeover bid for Dime Bancorp.
- 127: The number of bank branches operated by Dime Bancorp, mostly in the New York City area.
- $0 outstanding: The status of North Fork's cash-and-stock offer, which expires on Friday.
Sources:
- "North Fork to Abandon Dime Bid, Use Proxy Fight Next Year, Experts Say" - Bloomberg
- "North Fork, Dime in Rare New York Feud" - The Wall Street Journal (no date provided)