Federal Trust Corp., a thrift holding company based in Sanford, Fla., has entered into a nonbinding letter of intent with an unnamed investor group in New York and Florida that would acquire control of the company by investing $40 million to $55 million. The company is under Office of Thrift Supervision orders to raise capital by Sept. 30, or failing that, enter into a merger agreement by Nov. 15. Federal Trust had reached an agreement with Sidhu Advisors FDT LLC on Aug. 11 under which Sidhu would have invested $30 million in the company. The latest statement from Federal Trust said those negotiations have been discontinued. Jay Sidhu, the former chairman and chief executive of Sovereign Bancorp Inc., Philadelphia, controls Sidhu Advisors.
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