Legacy Bancorp Inc. is proceeding with its merger with Berkshire Hills Bancorp.
Under the terms of the agreement, the $1 billion-asset Legacy had the opportunity to pursue alternative bids during a "go-shop" period, which ended Jan. 31. The Pittsfield, Mass., company said Tuesday it did not receive any other proposals, even though its advisers, Keefe, Bruyette & Woods, notified several other banking companies of its availability during the go-shop period.
Damon DelMonte, an analyst with Keefe, Bruyette & Woods, said the provision could help discourage shareholder lawsuits claiming the board breached its fiduciary duty — an increasingly common claim as more deals are announced.
The deal, valued at $108 million, is expected to close in the second quarter.
According to the agreement, each share of Legacy common stock would be exchanged for 0.564 share of Berkshire stock, plus $1.30 in cash. As a result, 90% of the merger consideration would be in the form of Berkshire stock and 10% would be in cash.