The bidding war is apparently over. UCBH Holdings Inc. in San Francisco announced late Tuesday that it had withdrawn its $97.4 million offer for Great Eastern Bank in New York, which has accepted a $101 million bid from Cathay General Bancorp.
"While the Great Eastern Bank board of directors offered us the opportunity to match the Cathay General Bancorp offer, we believe that doing so was not in the best interests of our shareholders," said Thomas S. Wu, UCBH's chairman, president, and chief executive.
UCBH announced the deal in October, but in January the $6.8 billion-asset Cathay General, of Los Angeles, offered $58.44 a share - about $2 more than UCBH.
Cathay has exercised options and intends to acquire 41% of Great Eastern's outstanding stock; it previously stated that it could vote against UCBH's deal. Under New York law, the sale of a company requires approval from the holders of two thirds of the shares voted.
UCBH said that under the merger agreement it had received a termination fee of $5 million.
