Cadence Financial Corp. of Starkville, Miss., on Wednesday called off its deal with longtime competitor Trustmark Corp. and instead agreed to be acquired by an investment group in Texas.
The parent company of Cadence Bank will be bought by Community Bancorp LLC, a Houston company formed to invest in community banks.
Community Bancorp agreed to pay Cadence shareholders $2.50 per common share in cash. It also agreed to purchase $44 million of Cadence's preferred stock and warrants from the Treasury Department through the Troubled Asset Relief Program for $38 million in cash.
On Sept. 22, the $1.9 billion-asset Cadence had agreed to be acquired by Trustmark of nearby Jackson for about $2 per common share. Cadence's chairman and chief executive, Lewis F. Mallory Jr., said in a press release Wednesday that Community Bancorp offered a higher cash price per share, which represented a 20.2% increase from Tuesday's closing price.