Is the Bridge Bancorp and Dime Community Bancshares Merger a Good Deal?
Despite the coronavirus pandemic and lots of economic uncertainty, Dime Community Bancshares (NASDAQ: DCOM) and Bridge Bancorp (NASDAQ: BDGE) are pressing ahead with a planned merger of equals that will create an $11 billion asset bank in New York, stretching from the Hamptons to Manhattan.
The all-stock deal will see Bridge Bancorp issue 0.648 of Bridge shares for every Dime share. That gives the merger an implied value of roughly $489 million, or $14.80 per Dime share based on Bridge's stock price on June 30 . Although Bridge is issuing the new shares to Dime, the surviving entity will continue under the Dime Community Bank brand and will trade under the ticker DCOM. The deal is slated to close in the first quarter of 2021.
The big question: Is it a good move right now?
Source Fool.com
