Colonial BancGroup To Acquire Citrus & Chemical Bancorporation, Inc. Of Lakeland, Florida
MONTGOMERY, AL — Colonial BancGroup Chairman, CEO and President, Robert E. Lowder, announced today the signing of a definitive agreement to merge Citrus & Chemical Bancorporation, Inc. (C&C) and its subsidiary bank, Citrus & Chemical Bank into Colonial. Under the terms of the agreement, C&C shareholders will receive in the aggregate, consideration of approximately $219 million, 50% to be paid in cash and 50% in Colonial stock. The price to be paid per share is approximately $39.02 for each share of C&C common stock.
You can download the entire statement here.
I think this is disgusting… another local bank selling out…
My good neighbor sold their relationship with me to someone else for $219 Million Dollars.
I guess if I need a loan, I will have to call Alabama..
While you may prefer a local banking option, and there are options available to you, this acquisition is nothing more than the free enterprise system at work … and that system is the foundation of American enterprise.
Free enterprise has made the American economy among the most powerful in the world and, in most cases, individuals and corporations are free to buy and sell assets at their discretion.
The countries where such commerce is not allowed most likely do not offer the freedom to choose that we enjoy.
Yes, Bob you are correct. This is the free enterprise system at its finest. However, with all due respect, C&C was built around the community, for the community, and frankly, by the community. With a Business Degree I understand, as many of the readers do, that the business is there to provide value to the shareholders, and that it has done, year after year. I would argue that this value is indeed a very good deal for the stockholders of C&C, time will tell if it is a good deal for the employees and the community.
In regards to the selling of C&C Bank, it is important to remember that in many cases where a founder or main principal of a company dies, the people left to run that business may not always have the love of or enthusiasm it takes to continue a sucessful operation. A charismatic figure like George Harris leaves big shoes to fill. Remember, the Bank was his lifes work! It became an engine of free enterprise on the day of his death.
Citrus and Chemical has been a community bank for many years. I understand that banks have to be sold at times but the employees should not be SOLD OUT….they should not lose their jobs. It really bothers me that the folks in Alabama do not think that some of our Florida employees should keep their jobs and have laid them off. That is BAD BUSINESS….