Bank of New York Wins Fed Extension For Hostile Irving Bid
NEW YORK -- Bank of New York Co. won an additional 60 days from the Federal Reserve Board to wage its hostile $1.3 billion offer for Irving Bank Corp.</br></br>Irving, which has endorsed a rival offer from Italy's second-largest bank, Banca Commerciale Italiana S.p.A., had opposed the extension. The Fed's approval had been scheduled to expire last Saturday.</br></br>But in granting the extension, the Fed expressed concern about the drain in money and management attention from the 10-month takeover battle and urged the banks to conclude it quickly.</br></br>Bank of New York is offering $15 cash and 1.575 of its own shares for each share of Irving, or $70.125 a share, based on Bank of New York's closing price of $35 a share in New York Stock Exchange composite trading. Banca Commerciale is offering $80 cash and $4 a share in warrants for 51% of Irving; its application won't be ruled on by the Fed until fall.</br></br>If Irving would agree to a friendly merger, Bank of New York has proposed sweetening its bid to $15 cash, 1.675 of its own shares and $5 a share in special dividends, or $78.625 a share. However, the Fed said that Bank of New York would have to issue new stock to finance any special dividend.