A shareholder of Centralia, Ill.-based CSB Financial Inc. has sued the company, its top executive, and its directors after CSB allegedly rejected an offer to be bought for $10.8 million in cash.
The class action, which was filed this month in a Delaware court, alleges that CSB's chief executive officer, K. Gary Reynolds, rejected a bid in March to sell the $48 million-asset thrift holding company for $14.75 a share.
The offer price was 64% higher than the company's closing price on the day of the offer and "represented a substantial benefit to stockholders," according to the lawsuit.
The shareholder, Stanley Finger, alleges that Mr. Reynolds and the board breached their fiduciary duties by not putting the offer to a shareholder vote. Mr. Finger wants CSB to buy out his and other shareholders' stake in the company for $14.75 per share, said Mr. Finger's attorney, Randall H. Steinmeyer of Reinhardt & Anderson in St. Paul.
Executives from CSB were not immediately available for comment. Its stock was trading at $9.50 at midday Friday.