Cenit Wins Respite From Pressure to Sell

The largest shareholder of Cenit Bancorp has agreed to withdraw a plan to force the Norfolk, Va., thrift to sell.

Jerry Shearer, managing partner of Mid-Atlantic Investors in Columbia, S.C., said Friday that after "very frank discussions" with Cenit management, he will give the thrift time to improve its performance.

Mid-Atlantic, which owns 9.7% of Cenit's outstanding shares, had made a similar proposal last year but withdrew it after reviewing Cenit's business plan. The thrift has $641 million of assets.

The investment group was pushing for a sale because it is concerned that community banks are losing the chance to be bought by larger companies at significant premiums.

"If Cenit can execute its business plan, we will give them the opportunity to perform," Mr. Shearer said. "If not, we will act decisively."

Michael S. Ives, president and chief executive officer of Cenit, acknowledged that Mr. Shearer has made valid points in their discussions.

"Our business plan is designed to maximize value for our stockholders, and we accept Mr. Shearer's challenge to pick up the pace," Mr. Ives said.

Mr. Shearer had a similar plan to force the sale of Baltimore-based Provident Bankshares, but shareholders defeated the proposal last Wednesday.

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