Starbuck Bancshares has sweetened the consideration it will pay for PremierWest Bancorp (PRWT) in Medford, Ore.
Starbuck, the parent of AmericanWest Bank, has agreed to pay an additional $3.5 million in cash for the $1.1 billion-asset PremierWest, a 21% increase over the price the companies reached in October.
"We are very pleased to announce the increased merger consideration to our common shareholders and we continue to believe that the merger with AmericanWest Bank is in the best interests of PremierWest shareholders," Jim Ford, PremierWest's chief executive, said in a press release.
The change comes as PremierWest works to persuade shareholders to approve the deal, which management says would provide Premier West Bank with much-needed capital, according to a prospectus filed by Premier in January with the Securities and Exchange Commission.
PremierWest on Wednesday adjourned a meeting of its shareholders until March 28 to give it time to gather enough votes for the deal. The move marked the second time PremierWest had extended the deadline.
As of Wednesday, 49.2% of the outstanding shares and 60% of the total votes cast by shareholders are in favor of the merger.
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