Bank of New York Loses Bid for Control of Irving Board
Irving Bank Corp. declared a surprise victory Monday in its battle to remain independent of rival Bank of New York Co., announcing the defeat of its suitor in a proxy fight for control of its board.
Bank of New York immediately said it was disappointed and would reassess its options, including possibly ending its $1.08-billion offer. Banking analysts said that winning the proxy fight was critical to Bank of New York’s chance of succeeding in its hostile takeover plan.
Irving would not give any figures on its proxy success, nor would it comment on the margin of victory. However, bank industry sources say Irving won with 52% of the votes.
“The independent inspectors of election, Corporation Trust Co., notified Irving and Bank of New York that based on the inspection of a preliminary count of the proxies . . . Irving’s present board of directors was reelected,” Irving said in a statement. The final vote tally will be given on May 24.
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