The $544 million merger between Bridgeport’s People’s United Bank and Farmington Bank has received approval by shareholders in the latter’s parent firm. As a result, the deal is expected to officially close on Oct. 1.
First Connecticut Bancorp Inc. stockholders approved the all-stock merger – first announced in June – with People’s United Financial Inc. First Connecticut shareholders will receive 1.725 shares of People’s United’s common stock for each share held.
First Connecticut Bancorp also approved an advisory measure regarding a $14.8 million package of severance and other cash payments payable to its top executives – including Chairman, President and CEO John J. Patrick Jr., who is due to receive up to $6.1 million – when the merger closes.
As previously reported, Farmington Bank has informed the Connecticut Department of Labor that it plans to lay off 95 of the 350 employees at its corporate headquarters in Farmington once the merger is completed. Those cuts are expected to begin Nov. 5 and continue through the end of February.