Roundup: Target Sets Shareholder Vote on Shawmut Bid

HARTFORD - Northeast Federal Corp. said it will hold a stockholders meeting to consider its proposed acquisition by Shawmut National Corp.

The meeting is scheduled for March 17. It had been postponed last month because of a delay in completing the proxy and prospectus information, Northeast Federal said.

Analysts said a drop in Shawmut's stock price held up the proxy and prospectus. Shawmut shares fell below the "walk away" price of $21.46 each, or $171.2 million for the deal.

The acquisition plan was first announced in June.

Northeast Federal also said it is cutting its projection of 1995 earnings because of rising interest rates. The bank says it will probably earn $14 million to $15 million this year, or 75 cents to 95 cents a share.

Earlier this year, the $3.5 billion-asset bank projected earnings of $16 million to $18 million, or 80 cents to a $1 a share.

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