LOS ANGELES PBOC Holdings Inc. is being sued for failing to negotiate a higher sale price in its pending sale to FBOP Corp. of Oak Brook, Ill.
Riviera-Enid LP, a Florida investment group that owns 21,000 PBOC shares, filed suit Thursday in Delaware Chancery Court.
In its complaint, the group alleged: The amount offered in the proposed transaction is inadequate and has been timed to take advantage of the companys low stock price.
FBOP, the $5.4 billion-asset parent of banks in Illinois, Texas, and California, announced last Monday that it was buying $3.3 billion-asset PBOC for $200 million, or $10 a share. PBOCs Peoples Bank of California would be merged into one of FBOPs California subsidiaries, California National Bank in Los Angeles.
The deal was valued at 1.03 times PBOCs book value, or $9.71 per share.
FBOP was also named as a defendant in the lawsuit.