Washington Banking Co. in Oak Harbor said Tuesday that it has called off its pending sale to Frontier Financial Corp. in Everett, Wash., because the buyer could not obtain regulatory approval for the deal in a timely manner.
The $4 billion-asset Frontier announced in September that it would buy the $893 million-asset Washington Banking Co. for $191 million.
The agreement had called for Frontier to increase its offer if its average stock price was less than $21 for the 10-day period that ended March 20, about a week before Washington Banking's shareholders were scheduled to vote on the deal. On March 20, Frontier's stock closed at $18.20, but Washington Banking's shareholders still voted in favor of the deal.
Washington Banking said the delay in regulatory approval was a result of circumstances that "constitute a breach of Frontier's representations and warranties contained in the merger agreement."
