Green Bankshares, Inc.
Robbins Umeda LLP Is Investigating Green Bankshares, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Green Bankshares, Inc. (NASDAQ: GRNB). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Green Bankshares in connection with their efforts to sell a 90.1% stake in Green Bankshares to North American Financial Holdings, Inc.
On May 5, 2011, North American Financial announced that it has signed a definitive investment agreement to acquire a 90.1% stake in Green Bankshares for $217 million. North American Financial’s investment will be composed of approximately 120 million newly issued shares of Green Bankshares’ common stock at $1.81 per share. Upon consummation of the investment, Green Bankshares’ current shareholders will receive a Contingent Value Right, entitling them to cash proceeds of up to $0.75 per share depending on the credit performance of Green Bankshares legacy loan portfolio over the five years following closing. The transaction is expected to be consummated in the third quarter of 2011.
The investigation focuses on whether Green Bankshares’ board is undertaking a fair process to obtain maximum value for its shareholders. On May 4, 2011, Green Bankshares traded as high as $2.32 and closed at $2.26. Further, Steve Rownd, current Chairman and Chief Executive Officer of Green Bankshares, is expected to become a member of North American Financial’s senior management team following the close and is expected to serve as North American Financial’s Market President for Tennessee.
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