TD Banknorth Goes Private

The bank's Toronto parent takes it out in a $3.2 billion deal.
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TD Bank Financial(TD) - Get Report is taking private its U.S. retail banking arm TD Banknorth (BNK) in a deal valued at $3.2 billion.

The Toronto-based bank is paying $32.33 for each share of TD Banknorth it didn't already own. TD Bank, also known as Toronto-Dominion, owns about 57% of TD Banknorth's shares.

The deal represents a 6.5% premium over TD Banknorth's Friday close of $30.35.

"This transaction offers TD Banknorth shareholders an opportunity to realize fair value for their shares, while also offering TD Bank Financial Group shareholders the long-term benefits of 100% ownership of a US banking business in an attractive marketplace," said TD Bank CEO and President Ed Clark.

In premarket trading shares are up $1.55, or 5%, to $31.90.