Banknorth Group Inc.'s largest shareholder, which had been hinting that it might vote against Toronto-Dominion Bank's offer to buy a 51% stake in Banknorth, is now throwing its support behind the offer.
Private Capital Management LP, a Naples, Fla., unit of Legg Mason Inc. of Baltimore, said in a securities filing Thursday that it expects vote in favor of the deal. Private Capital holds 15.2 million Banknorth shares, or an 8.7% stake in the Portland, Maine, banking company
In a Sept. 23 filing with the Securities and Exchange Commission, Private Capital said it had "significant concerns" about the deal and that Banknorth should "take prompt action to reassess the options and opportunities available," including an auction.
Toronto-Dominion's offer was announced in August and is expected to close in February. Private Capital, which has sold about 46 million Banknorth shares since the Sept. 23 filings, said Thursday that it has reviewed all of the information available. However, it said its final vote would depend on "the definite proxy material."
A spokesman for Private Capital said it would not discuss the matter further.
Banknorth has not set a date for a shareholder vote.
