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Oritani Financial engaged in other deal talks before Valley National transaction

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Oritani Financial engaged in other deal talks before Valley National transaction

Before its discussions with Valley National Bancorp, Oritani Financial Corp. was in talks with various companies over a potential business combination, but negotiations fell through over disagreements in deal terms.

Those conversations included meetings with two larger in-state bank holding companies and one out-of-state company.

Valley National was one of the 22 companies Keefe Bruyette & Woods contacted in fall 2017 for Oritani, but it was not until early 2019 that both companies started considering a potential business combination.

In May, both banks informally discussed an exchange ratio of 1.61 Valley National common shares for each Oritani common stock. In the same month, Valley National provided Oritani with an initial nonbinding indication of interest. Valley National proposed an all-stock transaction with a value of $16.45 per share to shareholders of Oritani based on a fixed exchange ratio of 1.60 Valley National common shares for each share of Oritani common stock., with Valley National senior executives indicating that they would be willing to increase the ratio to 1.61.

An initial draft agreement on June 6 indicated a ratio of 1.61 Valley National common shares for each Oritani common stock. However, Valley National later requested for the ratio to be returned to 1.60 due to, among other things, the changes in the stock prices of both Valley National and Oritani.

The companies executed the merger agreement June 25, and the $740 million deal was announced June 26.