People's United Makes Its Move

Shares of Chittenden recently were up $6.85, or 24%, to $35.09 on the deal. People's shareholders were less enthusiastic, sending shares down $1.13, or 6%, to $17.58.

Anton Schutz, president of Mendon Capital Advisors and the fund manager to Burnham Financial Services, said People's investors are worried about the integration and management's capability of running a larger company.

"The company in some ways was relatively obscured to the Street until they went fully public," he says. "As rumors started that People's is going to do a deal ... a lot of people were shorting [the stock] thinking they were going to do a dumb deal that was really big and far too expensive.

"Chittenden culturally and managementwise is much closer" to People's, adds Schutz, who owns positions in People's. "We're not talking about a great leap to bring these companies together. This is a really good fit."