Magazine article American Banker

One Valley Takes Steps to Prevent a Hostile Interstate Takeover

Magazine article American Banker

One Valley Takes Steps to Prevent a Hostile Interstate Takeover

Article excerpt

One Valley Takes Steps to Prevent a Hostile Interstate Takeover

One Valley Bancorp officials say they want to keep the holding company owned and operated in West Virginia once the state's interstate banking law goes into effect.

In an effort to assure that position, stockholders of one of the state' two largest bank holding companies have voted to change rules for electing directors to the company's board.

One Valley stockholders held their annual meeting on April 22 and approved two resolutions.

One of them staggers the terms of the directors, which would prevent wholesale changes in the board's membership at one time.

The other sets up new procedures for electing new directors, filling director vacancies, and removing directors. It also changes the requirements necessary to amend the company's bylaws. That too would discourage an outside firm from conducting an unfriendly raid on the company ownership.

In One Valley's annual report released in recent days, Robert F. Baronner, the president and chief executive officer, said the company wants to "remain a West Virginia owned and operated institution.'

But he said in the letter to shareholders that because West Virginia banks have been limited in their growth, few will have the necessary financial and human resources to expand into other states when the interstate law takes effect on Jan. 1, 1988.

"Therefore, it is likely that most of the state's banks will be candidates for acquisition rather than acquirers,' Mr. …

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