Oritani Financial and Greater Community Bancorp have mutually agreed to terminate the agreement and plan of merger that the parties previously executed in November 2007.
Oritani’s board of directors concluded that the mutual termination of the merger agreement was in the best interests of Oritani stockholders. Under the terms of the termination agreement, the companies have agreed to release each other from any claims relating to the proposed merger.
Greater Community will pay $700,000 to Oritani under the mutual termination agreement, and Oritani has released Greater Community from any further break-up fee in connection with the merger agreement.
Kevin Lynch, chairman, president and CEO of Oritani, said: The valuations in the banking industry have changed dramatically since this transaction was initially negotiated. Consequently, the benefits currently projected to our shareholders are no longer what we expected when we entered into this transaction.
Combining this situation with the shareholder opposition encountered by Greater Community led us to believe that the termination of the transaction was in our mutual best interests.