and then watch it go down the drain at $21.05!
Remember, one bank is advised by FIG, one by RJF and the old fogies (that's the HBKS shareholders with Alzheimer's) are advised by Pres. Reagan.
Great Man, Great American, Great President: Ronald Reagan!
Really brilliant move for TOWN. With all the overlap there is the potential for huge expense savings going forward. (Closing branches and laying people off.) Plus, price paid is still reasonable, especially since TOWN is moving while their stock is relatively high.
On the downside, there's a lot of moving parts to put together. The only thing to wonder about is whether the community banker management can move to the next level ... TOWN IS GETTING REALLY BIG! That would be a concern.
Wow ... the HBKS lowball buyout deal has brought the old fogey shareholders back to their senses ... it's like they were rejuvenated by alien people with MBA's!
RICK ought to be a private company ... wait, that won't work. How does management dip into another's pocket when it owns them all? Would have to pay for own jet ... ouch!
Oh sure, I'm convinced ... I'm going to vote for the buyout ... ahem "merger" ... because I want to help the Hampton Roads economy by creating a larger bank that I won't have a share in and then contribute to the U.S. Government by paying more taxes!
TOWN Press Release revised:
"Why the rush? We had to rush to finish before MNRK realized what a mistake they were making."
Notice no one posts on the TOWN message board ... while MNRK always shows something. That's because all the TOWN customers and shareholders are old people ... really old and senile! They have some money, but they are all retired. In the meantime, MNRK has all the young, working people with energy, and a brighter future. It would be like Facebook (MNRK) selling itself to Reader's Digest (TOWN)! MNRK shouldn't have rushed into the deal without strategizing more. Dumb!
Monarch shareholders will receive 0.8830 shares of TowneBank common stock for each share of Monarch. If TOWN drops back to 17, then MNRK would trade at about 14, because the target always trades a little lower than the math would indicate. Come 2016, a couple of things will happen: (i) likely market sell off again as in past August; and (ii) people get tired of waiting on stocks tied up in mergers.
and shareholders get only the crumbs. However, some crumbs are bigger than others!
Wanted to buy a strip club company and all I got was real estate ... geez!
Yes, stores are crowded, so kick the lookers out. Nice! That sounds very bullish!
At least Apple will be doing some research in the new digs ... wait, maybe will RICK will be doing some practice bar tending?
Bet solar power not included though .... that's not big in Texas!
Q: What happens if the merger is not approved?
A: Wait another year, and HBKS will probably be bought out by someone like BB&T for closer to $30 in a tax-free deal. I mean ... look at Monarch with the old "Heritage boys" ... they just got about twice book value for their ... um ... well-managed bank (LOL).
Q: And why are we selling now for $21.05 cash?
A: Actually, since it now seems pretty clear no one is voting for the buyout ... ahem, we mean "merger" ... it looks like we're not really doing that after all. Sorry we bothered you.