In the early and mid-1980s, the stakeout merger agreement was a popular means of positioning a bank holding company for interstate expansion in anticipation of pending legislative changes.

Many of these stakeout mergers were not ultimately consummated. Of 20 transactions reviewed, only four resulted in an ultimate merger of the initial stakeout partners. Nine target companies ultimately merged with another partner, five companies remained independent, and two companies failed. However, there was a substantial payday for some acquirers.

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