The breakup of a merger between two of New York's oldest thrifts is the fourth-largest bank or thrift deal termination in SNL Financial's M&A database.
New York Community Bancorp Inc. and Lake Success, N.Y.-based Astoria Financial Corp. said Dec. 20 they were terminating their agreement to merge. In the deal that had been pending for more than a year, New York Community had planned to acquire Astoria Financial for $1.89 billion in stock, as valued by SNL at the time of announcement, plus cash totaling $50.4 million.
The total consideration of $1.94 billion at the time of its announcement makes it the largest deal to be called off since Citigroup Inc. made a play for Wachovia Corp.'s banking operations during the height of the banking crisis in 2008. That deal fell apart after Wells Fargo made a better offer for the beleaguered Wachovia, which was under threat of FDIC receivership.
The only larger deal terminations in SNL's M&A database, which is comprehensive back to 1990, are the failed attempt by Zions Bancorp. to buy fellow Salt Lake City bank First Security Corp. for $5.82 billion in common stock in 2000 and the scuttled agreement for First Bank System, the predecessor company of U.S. Bancorp, to buy Los Angeles-based First Interstate Bancorp for $10.69 billion in stock in 1995.
Interestingly, Wells Fargo ended up as the winning bidder in all three of the largest deal terminations.
SNL data shows that common stock considerations are slightly less common in bank deals that successfully closed versus those that failed. In bank and thrift deals valued above $100 million announced since 1994, common stock was part of the consideration in 79% of the terminated deals versus 72% of the completed deals.
The data in the above table was compiled using the mergers & acquisitions filter in the SNL data wizard feature of SNL Office.
To analyze M&A data on SNL's website, click here.