Acquisition of Virginia Commerce Bancorp, Inc. by United
Bankshares, Inc. May Not Be in Virginia Commerce Bancorp, Inc.
Shareholders' Best Interests
SAN DIEGO and ARLINGTON,
Va., Jan. 31, 2013 /PRNewswire/ --
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the acquisition of Virginia Commerce Bancorp, Inc.
(NASDAQ: VCBI) by United Bankshares, Inc. (NASDAQ:UBSI).
Virginia Bancorp operates as the bank holding company for Virginia
Commerce Bank, which provides business and consumer banking
services in Northern Virginia and
the Metropolitan Washington, D.C.
area.
(Logo:
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)
On January 30, 2013, United
Bankshares announced that it had entered into an agreement to
acquire all the outstanding stock of Virginia Bancorp.
Pursuant to the agreement, Virginia Bancorp's shareholders will
receive 0.5442 shares of United Bankshares stock for each share of
Virginia Bancorp owned. The transaction has been approved by
the board of directors of both companies and is expected to close
in the third quarter of 2013.
The Board of Directors' Actions May Prevent Virginia
Bancorp Shareholders from Receiving the Maximum Value for Their
Stock
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Virginia Bancorp is undertaking a fair process to
obtain maximum value and adequately compensate its shareholders in
light of the proposed acquisition. The proposed acquisition
price represents a mere 15% premium over Virginia Bancorp's closing
price of $12.21 on January 29, 2013, the day before the transaction
was announced. Similar regional bank mergers in the past year
have resulted in significantly higher one-day premiums, ranging
from 22% to 85%. Further, during the fourth quarter of 2012, the
company experienced positive growth, with total loans increasing
$42.4 million, an annualized growth
rate of 7.9%, and demand, savings, and interest-bearing deposits
increasing $51.0 million, an
annualized growth rate of 13%. Also, as Peter A. Converse, President and CEO of Virginia
Bancorp, noted, for the fourth quarter of 2012, not only were loans
30-89 days past due at their lowest levels in three years, but that
quarterly net charge-offs were down to $1.1
million, their lowest level since the first quarter of
2008.
Given these facts, the firm is examining the board of directors'
decision to sell Virginia Bancorp now rather than allow
shareholders to continue to participate in the company's continued
success and future growth prospects.
Virginia Bancorp shareholders have the option to file a class
action lawsuit against the company 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.
Virginia Bancorp shareholders interested in information about their
rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, 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:
http://www.robbinsarroyo.com/shareholders-rights-blog/virginia-commerce-bancorp/
Attorney Advertising. Past results do not guarantee a similar
outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP