Hudson City Bancorp, Inc.
Robbins Umeda LLP Announces an Investigation of Hudson City Bancorp, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Hudson City Bancorp, Inc. (NASDAQ: HCBK) in connection with their efforts to sell the company to M&T Bank Corporation (NYSE: MTB). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
On August 27, 2012, Hudson City and M&T announced that they had entered into a definitive merger agreement under which Hudson City will be acquired by M&T. According to the terms of the deal, M&T will acquire Hudson City through a cash or stock transaction. Hudson City shareholders will have the right to receive 0.08403 shares of M&T for each share of Hudson City they own or the cash equivalent at the time of the closing of the deal. Based on the closing price of M&T stock on August 24, 2012, the cash equivalent would be worth $7.22 per share. The acquisition has already been approved by the boards of directors of both companies.
Hudson City has $43.6 billion in assets. Since November 23, 2011 the Hudson City share price has risen from $5.09 to an opening price of $7.37 on August 27, 2012. Given these financial results, Robbins Umeda LLP is examining the board of directors’ decision to sell Hudson City now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Hudson is undertaking a fair process to obtain maximum value and adequately compensate its shareholders, or seeking to benefit themselves. Stifel Nicolaus has set a price target of $7.50 per share for Hudson City which is higher than the per share price currently being offered by M&T by almost 4%. Moreover, Ronald Hermance, Hudson City’s Chairman and Chief Executive Officer, was promised a position in the board of directors of M&T upon closing of the merger.
Robbins Umeda LLP attorneys highlight that Hudson City shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.