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Delay in $33M takeover of Madison National Bank

Madison National Bank.

Madison National Bank. Photo Credit: Handout

The deadline for completion of FNBNY Bancorp's proposed $33.7 million deal to acquire Melville-based Madison National Bancorp Inc. has been extended a month, until March 31, Madison said in a Tuesday statement.

The companies did not immediately explain the circumstances of the delay.  The deal had been expected to close by the end of February.

Madison's shares, thinly traded over the counter, were up 7 cents to $9.06 Tuesday on light volume. The takeover is based on a fixed $9.09 valuation of Madison's shares.

Madison said it had "agreed to waive its right to terminate the merger agreement with FNBNY Bancorp, Inc. ... until March 31, 2012 in return for a supplemental extension payment of $500,000."

If the sale doesn't close by March 31, Madison said, it will be allowed to terminate the merger agreement and keep the money.

Newsday reported last month that federal regulators and shareholders had approved the takeover of Madison by the Manhattan-based FNBNY.

Madison has branches in Massapequa, Melville and Merrick. If the merger takes place, it will be renamed First National Bank of New York and operate as a subsidiary of FNBNY, which operates no branches now. No branch closings are expected.

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