Acquisition of Sterling Bancorp by Provident New York Bancorp May Not Be in
the Best Interests of Sterling Bancorp Shareholders
SAN DIEGO and NEW YORK, April 8, 2013
SAN DIEGO and NEW YORK, April 8, 2013 /PRNewswire/ -- Shareholder rights
attorneys at Robbins Arroyo LLP are investigating the acquisition of Sterling
Bancorp (NYSE: STL) by Provident New York Bancorp (NYSE: PBNY). On April 4,
2013, the two companies jointly announced the signing of a definitive merger
agreement whereby Sterling Bancorp shareholders will receive 1.2625 shares of
Provident stock for each share of Sterling Bancorp stock, or $11.12 per share.
Sterling Bancorp Shareholders Might Not Receive Maximum Value for Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at Sterling Bancorp is undertaking a fair process to obtain maximum value and
adequately compensate its shareholders in the merger or whether they are
seeking to benefit themselves.
The $11.12 merger consideration represents a premium of only 11.2% based on
Sterling Bancorp's closing price on April 3, 2013, the last trading day prior
to the merger announcement. Moreover, the $11.12 offer price is substantially
below the target price of 12.50 set by Sandler O'Neil, and the $12.00 target
price set by Jenney Montgomery on February 27, 2013.
Is the Acquisition Best for Sterling Bancorp and Its Shareholders?
On January 24, 2013, Sterling Bancorp released its fourth quarter and full
year 2012 earnings reflecting strong financial and operating performance for
2012. Specifically, the company reported that net income available to
shareholders rose to $20 million, as compared to $15.5 million for the full
year 2011. Further, the company's pre-tax income increased 31% for the full
year, and 58% for the fourth quarter, as compared to the same periods in 2011.
Moreover, Sterling Bancorp has beat analyst EPS and net income expectations
for the last seven quarters. In announcing these results, Louis J. Cappelli,
Sterling Bancorp's Chairman and CEO, commented, "We believe the positive
momentum we experienced in 2012 is continuing and that Sterling is well
positioned for 2013... We believe that our ability to redeploy our assets,
while generating revenue from a diverse and balanced range of sources … will
continue to contribute to enhanced shareholder value going forward."
Given these facts, the firm is examining the board of directors' decision to
sell Sterling Bancorp now rather than allow shareholders to continue to
participate in the company's continued success and future growth prospects.
Sterling Bancorp shareholders have the option to file a class action lawsuit
to secure the best possible price for shareholders and the disclosure of
material information so shareholders can vote on the transaction in an
informed manner. Sterling Bancorp shareholders interested in information
about their rights and potential remedies can contact Darnell R. Donahue at
(800) 350-6003, firstname.lastname@example.org, or via the shareholder information
form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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