Tri-Valley Bank in San Ramon, Calif., said that its largest individual shareholder is making a bid to double his stake.
Gregory Solsrud, who owns about 9.9% of the $103 million-asset Tri-Valley, sent a letter to fellow investors offering to buy enough of their shares to increase his holdings to 19.9%, the bank said in a news release Monday. He is offering 55 cents per share.
Tri-Valley said it will remain neutral and not make a recommendation to shareholders. A majority of Tri-Valley's officers and directors have said they do not plan to sell shares to Solsrud.
Solsrud acquired his stake in Tri-Valley in two separate private placements held earlier this year. Tri-Valley had planned to make Solsrud a director, but it has suspended that move pending results of Solsrud's offer.
Tri-Valley's shares trade on the OTC Bulletin Board, but the trading market for the shares is "extremely limited," the bank said.