Summit Bank Corp. of Atlanta has decided to halt its takeover bid for another Atlanta-based banking company that caters to Asian-Americans.
The $278 million-asset Summit announced Thursday that it would terminate its tender offer for $52 million-asset Global Commerce Bank because Summit had less than the minimum amount of shares stated in the offer.
Two weeks ago, after numerous extensions of its tender offer, Summit got regulatory approval to buy a minimum of 29% of Global Commerces outstanding shares and said at the time more than 30% had been tendered.
Summit said Thursday that it no longer had the minimum.
Pin Pin Chau, chief executive officer of Summit, said that owning less than the minimum would not be beneficial to her companys shareholders. However, Summit has still not given up on the idea of combining the two companies, she said.
We still believe that a combination of the two institutions makes great business sense, she said.
Y.T. Lin, a spokesman for Global, said it would not comment on the termination of Summits tender offer except to say, We are still trying to digest what is happening.