Canadian banking company TD Bank Financial Group said Monday it agreed to acquire the portion of TD Banknorth Inc. it does not already own for about $3.2 billion.
TD Bank Financial Group currently owns approximately 130 million shares of common stock of TD Banknorth, the Northeastern regional bank based in Portland, Maine, representing about 57 percent of outstanding shares.
It is offering $32.33 per share for the rest, a 6.5 percent premium over the $30.35 closing price of TD shares on Friday.
The transaction is subject to stockholder approval as well as approval from the Massachusetts Board of Bank Incorporation, but is expected to close in March or April 2007.
After closing the deal, TD Banknorth will become a wholly owned subsidiary of TD Bank Financial Group.