Dauphin Deposit Corp. reportedly received a higher offer from Mellon Bank Corp. the same day it agreed to be acquired by Allied Irish Banks PLC.
The Harrisburg, Pa., Patriot-News reported the Mellon overture on Tuesday, but did not say how much the Pittsburgh bank offered.
Dauphin, a Harrisburg banking company with $6 billion of assets and $1.29 billion in market capitalization, agreed to sell to Allied Irish for $1.36 billion, or $43 per share. Shares were trading at $41.125 on Jan. 21, the day the deal was announced, and Thursday closed at $42.31.
Dauphin spokesman Chuck Moran confirmed that other offers had been received, but declined to identify the suitors. He said the bank considers its deal with Allied Irish to be final.
Mr. Moran said Dauphin considered offers from other banks, but "none that I'm aware of" offered more money than Allied Irish. A spokesman for Allied Irish's American subsidiary, First Maryland Bancorp, said the bank was unaware of other bids and expects the merger to go ahead.
Dauphin chief executive Christopher R. Jennings reportedly told the Patriot-News that another bank made a higher offer later in the day after Dauphin signed a definitive agreement with Allied Irish, and it was too late to reopen the deal. Mr. Jennings did not return phone calls.
Mellon was the sixth-largest shareholder in Dauphin as of Dec. 31, according to CDA/Spectrum. A Mellon spokesman dismissed the report that Mellon had made an offer as "rumor and speculation."
Mr. Moran said Dauphin took Allied's offer in part because it would probably mean fewer layoffs than a merger with another bank in the same region.
"The impact on the community and our employees was important," Mr. Moran said.
A meeting scheduled for April 21 in which Dauphin shareholders were expected to vote on the merger with Allied Irish has been postponed until May. Mr. Moran said the delay is intended to give bank officials more time to complete paperwork.