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FIRST FIDELITY TO ACQUIRE GREENWICH FINANCIAL IN FAIRFIELD COUNTY FOR $41.9 MILLION

 LAWRENCEVILLE, N.J., and GREENWICH, Conn., Aug. 2 /PRNewswire/ -- First Fidelity Bancorporation (NYSE: FFB), of Lawrenceville, and Greenwich Financial Corporation (NASDAQ: GFCT), of Greenwich, today announced a definitive merger agreement under which First Fidelity will purchase Greenwich Financial for $41.9 million in cash.
 Under the terms of the agreement, holders of Greenwich Financial common stock will receive $16.00 in cash for each share. The price represents about 126 percent of Greenwich Financial's book value of $12.65 per share at June 30, 1993.
 Greenwich Financial, a thrift holding company with $412 million in assets, operates the Greenwich Federal Savings & Loan with seven banking offices and 22,000 deposit accounts in the Greenwich/Stamford area of Fairfield County. Upon completion of the acquisition, Greenwich Federal will be merged into First Fidelity's Connecticut subsidiary, Union Trust Company of Stamford.
 "Greenwich Financial is an excellent bank with a strong presence in this highly attractive market," Thomas H. O'Brien, Jr., Union Trust president and chief operating officer, said. "This merger will enable us to expand our services in the Greenwich area and demonstrates our commitment to serving our Fairfield County customers."
 Joseph D. Gioffre, Greenwich Financial chairman and chief executive officer, said, "Merging with Union Trust provides our customers with access to the expanded services of a larger financial institution committed to growing its business here in Fairfield County. Our shareholders also benefit by receiving an attractive price for their stock."
 First Fidelity said that the acquisition, which will be accounted for as a purchase, is expected to close in the fourth quarter of 1993 and will be accretive to First Fidelity earnings per share in 1994.
 The transaction is subject to a number of customary closing conditions. Greenwich Financial has granted First Fidelity an option, exercisable under certain circumstances, to purchase 521,154 shares of Greenwich Financial common stock at the per share price of the stock at the close of the market today, Monday, August 2, 1993. The transaction has been approved by the boards of directors of both First Fidelity and Greenwich Financial. Hellmold Associates, Inc., advised Greenwich Financial, negotiated on its behalf, and gave an opinion on the fairness of the proposed transaction.
 The transaction must be approved by the holders of Greenwich Financial's common stock as well as by the regulatory authorities.
 Greenwich Federal Savings & Loan operates branches in Greenwich, Byram, Glenville, Old Greenwich, Cos Cob and Stamford.
 First Fidelity, with $32.3 billion in assets, is among the country's 25 largest banking companies and operates more than 600 offices through its principal subsidiaries, Union Trust Company, and the First Fidelity Banks of New Jersey, New York and Pennsylvania.
 /delval/
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 /CONTACT: Paul J. Levine (media), 201-565-2949, or Laura A. Schaible (analyst), 201-565-3397, both of First Fidelity Bancorporation, or Joseph D. Gioffre, 203-661-9550, or Mary G. Child, 203-869-7001, ext. 317, both of Greenwich Financial (media and analyst)/
 (FFB GFCT)


CO: First Fidelity Bancorporation ST: New Jersey, Connecticut, New York, Pennsylvania IN: FIN SU: TNM

MK -- PH005 -- 8161 08/02/93 08:30 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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