United Bank to buy Premier for $201M |
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Published
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Mon, 29 Jan 2007 15:14
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WASHINGTON (AFX) - United Bankshares Inc. on Monday agreed to buy Premier Community Bankshares Inc. for about $201 million in stock and cash, expanding its presence in the metropolitan Washington area.United agreed to pay either $34 in cash or 0.93 of a United share for each Premier share. The stock portion is worth $33.73 based on United's closing price of $36.27 Friday.The $34 price represents a 68 percent premium to Premier's Friday closing price of $20.20 on the Nasdaq. In electronic pre-market trading, the shares jumped $6.80, or 34 percent, to $27, indicating the stock will open above its 52-week high of $22.25.Premier has $900.7 million in assets and 26 offices in West Virginia and Virginia.United said it will pay between 50 percent and 65 percent of the purchase price in stock. The company expects no impact on 2007 earnings, but said the acquisition will boost its bottom line in 2008, assuming $8.25 million in pre-tax savings from combined operations.The deal is expected to close late in the second quarter or early in the third quarter. Each company's board has approved the transaction, which is still pending regulatory and shareholder approvals.With $6.7 billion in assets, United Bankshares operates 90 branches in West Virginia, Virginia, Maryland, Ohio and Washington.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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United Bankshares agrees to buy Premier Community Bankshares 