Robbins LLP: Acquisition of Greater Sacramento Bancorp (GSCB) by AmericanWest Bank May Not Be in Shareholders’ Best Interests
Robbins LLP are investigating the proposed acquisition of Greater Sacramento Bancorp (“GSCB”) (OTC: GSCB) by AmericanWest Bank. On October 15, 2014, the two companies announced the signing of a definitive merger agreement pursuant to AmericanWest will acquire all the outstanding shares of GSCB for $22.05 per share in cash.
Is the Proposed Acquisition Best for GSCB and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at GSCB is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the proposed consideration represents a premium of 26% based on GSCB’s closing price on October 8, 2014. This premium is significantly below the average one-day premium of 56% for comparable transactions within the past three years. Further, on July 16, 2014, GSCB released its second quarter 2014 earnings noting that for the full six months of 2014, Net Interest Income rose 5% to $7,432,000 over the first half of 2013.
In light of these facts, Robbins LLP is examining GSCB’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
GSCB shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
GSCB shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.