Virginia's Cenit Counts Ballots in Proxy Fight; Investor Urging Sale

The fate of a Virginia thrift under siege by an aggressive investor remains unknown after an uneventful annual meeting this week.

Shareholder votes were still being tallied Thursday in the bitter proxy fight between Cenit Bancorp and Mid-Atlantic Investors, a Columbia, S.C., group led by H. Jerry Shearer. Cenit officials said they expect the final count to be released when the annual meeting reconvenes May 6.

Cenit has 1.64 million voting shares outstanding.

Mr. Shearer, whose partnership owns a 9.7% stake in Cenit, had asked shareholders to back his slate of three directors and consider selling the $707 million-asset company. He said delaying Cenit's sale could mean it wouldn't fetch a good price when eventually sold.

After a meeting he described as "sort of bland," Mr. Shearer said he couldn't tell whether the tally would go in his favor.

"It is awfully close," he said. "A lot depends on whether either side is able to challenge any votes."

Michael S. Ives, Cenit's president and chief executive officer, said management is "cautiously optimistic" that it prevailed. He said Wednesday's 50-minute-long meeting surprised some by being rather calm.

That word wouldn't have described the atmosphere before the meeting.

"This great referendum has had all the earmarks of a political campaign," Mr. Ives told shareholders.

"Both the company and Mid-Atlantic Investors have expended large sums of money to present their views to you."

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