PITTSBURGH -- PNC Financial Corp. said it reached a definitive agreement to acquire CCNB Corp., a Camp Hill, Pa., banking company with $1.2 billion in assets.
The acquisition price would be about $167 million, based on the exchange ratio of 0.66 PNC share for each of CCNB's 5.9 million shares outstanding.
Stock Market Reaction
PNC's stock was down 12.5 cents to $42.625 at midafternoon Wednesday, making its bid for CCNB equivalent to $28.13 a share. CCNB was up $2.25, or 10%, to $24.50.
CCNB also granted PNC the option to buy up to 19.99% of CCNB's common stock if two banks terminate the deal.
Completion of the deal, expected in mid-1992, is subject to approval by regulators, CCNB shareholders, and PNC's board as well as completion of a due diligence review, PNC said.
'Consistent with Our Strategy'
CCNB owns three bank subsidiaries, including CCNB Bank, with 42 offices. In the same south-central Pennsylvania region, PNC owns banks in Hershey and Mechanicsburg. The Pittsburgh-based company has $42.5 billion in assets and 500 banking offices in six states.
Thomas H. O'Brien, chairman of PNC, said the deal is "consistent with our strategy of making in-market acquisitions."