NEW YORK — M&T Bank Corp. is buying Wilmington Trust Corp. for $351 million in stock as a deteriorating loan portfolio hobbles the Wilmington, Del., bank.
M&T said Monday Wilmington Trust shareholders will receive 0.051372 shares of its stock for each share of Wilmington Trust stock.
The deal comes after Wilmington Trust posted a $369.9 million third-quarter loss due to bad real estate construction loans in Delaware and said future losses were likely.
Wilmington Trust Chairman and CEO Donald Foley says its board felt the deal with M&T was the best available option for our stockholders.
Following the deal, M&T will operate 800 branches in eight states, Washington, D.C., and Ontario, Canada. The transaction is expected to close by the mid-2011.