CONCORD, N.C. -- CK Federal Savings Bank of Concord said it has signed a letter of intent to be acquired by SouthTrust Corp., a rapidly expanding holding company based in Birmingham, Ala.
SouthTrust agreed to exchange 0.95 shares of its common stock for each of the 1,349,036 outstanding shares of CK Federal, which has $435 million in assets.
Based on SouthTrust's share price of $25.375 early Friday, which was up 12.5 cents from Thursday, the indicated value of the acquisition is $32.5 million, or $24.11 a share, equal to 1.04 times CK Federal's book value on March 31.
CK Federal's stock rose early Friday by $2.875 a share, to $21.25.
SouthTrust, which has $1.04 billion in assets, owns 41 banks in six states including SouthTrust Bank of North Carolina, with headquarters in Raleigh and offices in Cary and Charlotte.