The bidding war for a $115 million-asset Oregon bank ended this week when a white knight, outbid, rescinded its offer.
Cowlitz Bancorp. of Longview, Wash., terminated its offer Monday for Douglas National Bank in Roseburg, Ore., a subsidiary of United Bancorp. Cowlitz said the deal was not in the best interests of its shareholders.
Douglas had asked $192 million-asset Cowlitz to defend it from $258 million-asset South Umpqua Bank, Douglas' hometown rival, which had made an unsolicited bid of $40 million.
Cowlitz offered $37 million, but South Umpqua responded with $43.4 million, or 2.8 times book.
Neal Zick, president and chief executive officer of Douglas, said its board is now prepared to review South Umpqua's offer and begin conversations.
"We were extremely disappointed to see Cowlitz pull out," said Mr. Zick. "But we understand their reasoning."
South Umpqua would probably eliminate up to 40 jobs, including those of Douglas National's senior executives, if the deal is approved. It would create the third-largest community bank in Oregon, with more than $400 million of assets.