Hanmi Financial in Los Angeles has withdrawn its proposal to merge with BBCN Bancorp.
The $4.2 billion-asset Hanmi said in a press release Thursday that its decision follows the $7.6 billion-asset BBCN's agreement to buy Wilshire Bancorp. BBCN's agreement with the $4.7 billion-asset Wilshire includes a $40 million breakup fee.
"While we strongly believe that Hanmi's proposal was superior to BBCN's announced agreement with Wilshire, as a disciplined acquirer, we have concluded that, at this time, continued pursuit of a combination with BBCN is not in the best interests of our stockholders," Hanmi's board said in the release.
Hanmi's board said the breakup fee of the BBCN-Wilshire deal would have increased the effective cost of its $1.6 billion unsolicited offer to merge with BBCN by 50 cents a share. (BBCN's agreement with Wilshire is valued at roughly $1 billion.)
"Hanmi remains focused on its disciplined growth strategy," the board added. "Hanmi's superior capital and liquidity positions will also allow us to capitalize on the dislocation that the announced BBCN-Wilshire combination is creating."