Buyout bid changed
in bank dealCentral Pacific increases the
amount of cash for City Bank
Central Pacific Financial Corp. sweetened its purchase offer today for the parent company of City Bank, increasing the amount of cash and decreasing the amount of stock in the deal.
The new deal would give shareholders of CB Bancshares Inc. 35 percent cash and 65 percent of Central Pacific stock, though the total purchase price has not changed. Previously, the offer was 30 percent cash and 70 percent stock.
"We've replaced a great offer with an even better offer -- increasing the cash component of our proposal," CPF said.
A City Bank spokesman said the bank hadn't seen the new offer and had no comment.
The total purchase price comes to approximately $272 million, which translates into $24.50 and 1.7606 shares of Central Pacific stock for each share of CB Bancshares. The stock of Central Pacific, traded on the New York Stock Exchange, fell 23 cents today to close at $25.67.
The new bid represents the latest chess move in the battle between the two banks. The board of CB Bancshares, City Bank's parent, unanimously rejected CPF's previous offer Sunday.
CB Bancshares has planned a special shareholders meeting for May 28. Central Pacific demanded the date be moved to June 19, to give shareholders more time to review the deal. Today, Central Pacific said the May 28 date is "moot" because it has made a new offer.