Magazine article American Banker

Virginia Merger Scuttled; Did Shareholders Rebel?

Magazine article American Banker

Virginia Merger Scuttled; Did Shareholders Rebel?

Article excerpt

A merger in the Virginia Beach area that would have created a $187 million-asset bank has collapsed, and dissident shareholders may have been the reason.

Seaboard Bancorp signed a letter of intent three months ago to be acquired by neighboring Bank of Hampton Roads, but last week the deal was scrapped.

Sources familiar with the situation said a handful of Seaboard stockholders blocked the deal. The stockholders objected to exchanging their stock for the thinly traded Bank of Hampton Roads stock, the sources said.

"Several of the key players there said, 'Hey, we're not going to let this thing fly,'" said one observer, who asked not to be named. "It wasn't the price, but just that the Hampton Roads stock wasn't liquid enough."

But Seaboard's president, P. Douglas Richard, said the proposed acquisition was terminated because Bank of Hampton Roads decided not to raise its offer price of $7.7 million after other banks stepped forward in recent months with higher bids. …

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