Acqusition of FirstMerit - Law Firm Seeks more Money for Shareholders
September 13, 2012
New York, New York -- Tripp Levy PLLC, a leading national securities law firm, announces that it is investigating the acquisition of FirstMerit Corp. FirstMerit Corporation (FMER) and Citizens Republic Bancorp, Inc. (CRBC) announced today that they have entered into a definitive agreement under which FirstMerit will acquire Citizens in a stock-for-stock transaction. Under the terms of the agreement, Citizens' shareholders will receive a fixed 1.37 shares of FirstMerit common stock in exchange for each share of Citizens' common stock. Based on FirstMerit's average ten-day closing stock price ended September 12, 2012, the implied value of a Citizens' share would be $22.50.
The investigation concerns whether the Board of FMER obtained the highest price possible for shareholders by conducting a full and fair auction process while not obtaining personal benefits for themselves in selling the company. If you are a shareholder of FMER and would like additional information concerning this matter, please contact us toll free at 877-772-3975
I am a stockholder of CRBC. I will vote no on the merger. CRBC is worth closer to $32.00 a share. It all depends on how the institutions vote. The majority of CRBC's stock is held by institutions. My bet is the deal will not go through unless FMER does something to prop up their share price.
I too am a stockholder of CRBC. FMER has made a 'steal deal' price for CRBC and for some reason the CRBC board has agreed. I will vote no for the deal and suspect that this initial offer price will not stand -- either through lawsuit or another suitor coming to the table. In any case, any reasonable analysis of the transactions suggests that the offer price is way too low and why in the heck would any CRBC shareholder want to hold FMER?