WASHINGTON - Dime Bancorp said it intends to buy 2.5 million shares of its common stock from Hudson United Bancorp for about $45.1 million, though the price is in dispute.
The share repurchase is in connection with the April 28 termination of the merger agreement between Dime and Hudson United, according to an SC13E1 form filed with the Securities and Exchange Commission on Wednesday.
Under the termination agreement, Dime Bancorp has the right of first refusal should Hudson sell part or all of the Dime shares it owns, the filing said.
Hudson was also required under the agreement to notify Dime of any plan to sell the shares before 10 a.m. the day before the sale, according to Dime's filing.
The dispute occurred when, according to a letter sent Tuesday to Dime Bancorp and included in Wednesday's filing, Hudson said it intended to sell all of its Dime shares at Friday's closing price of $18.25 - but Hudson later changed that offer and reset the price at Tuesday's close of $18.50.
Dime Bancorp said it accepted Hudson's $18.25 offer and that the letter rescinding the offer had no effect because it was received after the 10 a.m. deadline.