NEW YORK - Shares of Wilmington Trust Corporation plunged over 40% on Monday, as they announced they will be acquired by Manufacturers and Traders Bank (M&T Bank). Wilmington which is headquartered in Wilmington, Delaware will put an end to their rich 107 year history. M&T Bank which is the bright spot of Buffalo New York said "The purchase price values Wilmington Trust at tangible book value, and the acquisition will add to earnings by 2012, M&T said in a statement."If one examines the Wilmington Trust Corporation's books, it appears that the bank has charged off most of their losses. M&T has richly added to their shareholder wealth with this deal. It grows its assets by over 14% and essentially pays nothing in the deal. Since it receives the tangible book value back for the shares it pays for. Not only is it a good acquisition it is a smart investment.
A brilliant deal by Robert Wilmers the 75 year old and long time CEO of M&T Bank. Wilmington likely would have survived the financial crisis but inside The M&T fortress, Wilmington will add much more value then its purchase price.
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