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.
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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 2007."
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, 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/firstbank-corporation
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
