WYOMISSING, Pa. -- Sovereign Bancorp said it has completed its $400 million merger with Charter FSB Bancorp.

Charter will operate as a separate division of Sovereign Bank under the name Charter Federal Savings Bank.

In accordance with the merger agreement, Charter common shareholders will receive 3.4 shares of Sovereign common stock in exchange for each share of Charter common stock.

The transaction will be tax free to Sovereign and Charter, and to Charter shareholders. The merger will be treated as a pooling of interests.

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