GB&T Bancshares higher on buyout news
Shares of GB&T Bancshares Inc. (Nasdaq: GBTB) have appreciated on news before the start of trading that the multi-bank holding company will be acquired by SunTrust Banks Inc. (NYSE: STI) for $153.7 million in stock.
Shareholders of Gainesville, Ga.-based GB&T Bancshares will receive 0.1562 shares of SunTrust common stock for each share of GB&T common stock held. After the close of the acquisition, scheduled for the second quarter of 2008 pending regulatory approval, GB&T Bancshares’ banks will merge with those of Atlanta-based SunTrust.
“In light of the difficult economic conditions and the prospect of continued deterioration in the residential real estate markets, we have taken a $14.1 million loan loss provision in the third quarter to increase our loan loss reserves,” said GB&T Bancshares president and CEO Richard Hunt. “We view the opportunity to join forces with SunTrust as a positive move during these difficult times.”
SunTrust’s president and CEO James Well said in statement, “With this transaction we're taking advantage of an unusually attractive and timely opportunity to efficiently expand our Metro Atlanta franchise.”
The bank, which operates 1,685 retail branches and 2,533 ATMs in 11 states and the District of Columbia, said that its acquisition of GB&T Bancshares will not affect its 2008 earnings.
GB&T Bancshares is a seven-bank holding company with 30 banking offices and a mortgage company serving the Atlanta region.
At 3:48 p.m. ET, shares of GB&T Bancshares (GBTB) were up $1.90, or 22%, to $10.70. That’s far from the 52-week high of $22.86, which was touched on Nov. 21, 2006. The 52-week low of $8.75 was set on Nov. 1.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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