STURGIS, Mich. - Sturgis Bank and Trust Co. canceled its $29.6 million merger Wednesday with Southern Michigan Bancorp of Coldwater after failing to get a fairness opinion from its financial adviser.
Sturgis had hired Raymond James & Associates to evaluate whether the deal, announced in February, was good for its shareholders. Raymond James did not issue such an opinion, and $264 million-asset Sturgis called off the merger.
James T. Grohalski, president and chief executive officer of $291 million-asset Southern Michigan, said that both parties had agreed on all of the deal's other conditions. He said he was disappointed, and that Southern Michigan would look for other merger partners.
Leonard L. Eishen, president and CEO of Sturgis, said the company is not looking at any other deals.