In Brief: N.J.'s Summit Bancorp in $67 Million Deal

CHATHAM, N.J. - Summit Bancorp plans to buy Jackson, N.J.-based Garden State BancShares in a tax-free stock exchange worth about $67 million.

Under the definitive agreement, each share of $316 million-asset Garden State's stock will be exchanged for 1.08 share of Summit stock. That equals $22.41 for each of Garden State's three million outstanding shares, based on Summit's $20.75 stock price at June 13.

Garden State's nine branches in Ocean and Monmouth counties will be added to Summit's 90.

The deal increases $5.5 billion-asset Summit's market share in Ocean County from fifth place, at 8%, to second, at 12%.

The merger, which is still subject to shareholder and regulatory approval, is expected to close in the fourth quarter and add to Summit's earnings early in 1996.

Garden State has also granted Summit an option to buy up to 19.9% of its stock under certain circumstances.

Garden State may also declare dividends between June 13 and the closing date equivalent to what shareholders would have received if the deal had closed June 13. Summit paid shareholders 21 cents per share June 15.

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