Provident New York Bancorp (PBNY) and Sterling Bancorp (STL) have reached a settlement with shareholders who alleged that Sterling's board violated its fiduciary duty and failed to disclose crucial information about the two companies' pending merger.
The companies agreed to a settlement with the shareholders on Sept. 12, and disclosed further information about the merger in a
In April, the Montebello, N.Y.-based Provident
Some analysts
The settlement, which must receive court approval, would dismiss these suits. The shareholder vote on the merger is scheduled for Sept. 26.
Although the two companies believe that their previous disclosure was adequate, they settled the matter and agreed to further disclosure in order to avoid delaying the merger and to minimize the expense of fighting the suits, the regulatory filing says.
The supplemental disclosure the companies made Friday largely concerns the merger negotiations and the business projections that the companies received from Keefe, Bruyette & Woods.