Acquisition of Firstbank Corporation by Mercantile Bank Corporation May Not Be
in the Best Interests of Firstbank Corporation Shareholders
SAN DIEGO and ALMA, Mich., Aug. 16, 2013
SAN DIEGO and ALMA, Mich., Aug. 16, 2013 /PRNewswire/ -- Shareholder rights
attorneys at Robbins Arroyo LLP are investigating the acquisition of Firstbank
Corporation (NASDAQ: FBMI) ("Firstbank") by Mercantile Bank Corporation
(NASDAQ: MBWM) ("Mercantile Bank"). On August 15, 2013, Firstbank and
Mercantile Bank announced the signing of a definitive merger agreement whereby
Firstbank shareholders will receive 1.0 shares of Mercantile Bank stock for
each share of Firstbank stock, an equivalent of $18.77 per share. The merger
is expected to close by December 31, 2013.
Is the Merger Best for Firstbank and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at Firstbank is undertaking a fair process to obtain maximum value and
adequately compensate its shareholders in the merger. The $18.77 merger
consideration represents a premium of only 12.67% based on Firstbank's closing
price on August 14, 2013, the last day prior to the announcement of the
merger. The 12.67% premium is substantially below the average premium of
28.21% for comparable transactions over the past three years.
In addition, on July 22, 2013, the company announced its financial results for
the second quarter 2013. Notably, earnings per share of $.38 were 52% over
the $.25 earnings per share of second quarter 2012. Further, Firstbank
exceeded analyst earnings per share, net income, and sales expectations in
seven of the last eight quarters. In response to the positive financial
report, Thomas R. Sullivan, President and Chief Executive Officer of
Firstbank, stated that: "The second quarter of 2013 saw significant progress
for our company," noting "[w]ith the growth in loans, we saw the first
quarterly increase in our yield on earning assets since the third quarter
Given these facts, Robbins Arroyo is examining Firstbank's board of directors'
decision to sell the company to Mercantile Bank now rather than allow
shareholders to continue to participate in the company's continued success and
future growth prospects.
Firstbank 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.
Firstbank shareholders interested in information about their rights and
potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
email@example.com, or via the shareholder information form on the
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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