Chicopee Bancorp Inc

Robbins Arroyo LLP: Acquisition of Chicopee Bancorp, Inc. (CBNK) by Westfield Financial, Inc. (WFD) May Not Be in Shareholders’ Best Interests

Robbins Arroyo LLPĀ is investigating the proposed acquisition of Chicopee Bancorp, Inc. (NASDAQ: CBNK) by Westfield Financial, Inc. (NASDAQ: WFD). On April 4, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Chicopee Bancorp will merge with and into Westfield Financial. Under the terms of the agreement, Chicopee Bancorp shareholders will receive $20.42 in cash for each share of Chicopee Bancorp common stock.

Is the Proposed Acquisition Best for Chicopee Bancorp and Its Shareholders?

Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Chicopee Bancorp is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

As an initial matter, the $20.42 merger consideration represents a premium of only 13.8% based on Chicopee Bancorp’s one-month average closing price. This premium is significantly below the average one month premium of 36.0% for comparable transactions within the past five years.

On January 22, 2016, Chicopee Bancorp reported strong earnings results for its fourth quarter 2015. Chicopee Bancorp reported net income of $974,000 for the three months ended December 31, 2015, an increase of 225.8% compared to the same period of the prior year. Total interest and dividend income was $6.5 million for the quarter, an increase of 8.0% compared to the same period of the prior year.

In light of these facts, Robbins Arroyo LLP is examining Chicopee Bancorp’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.

Chicopee Bancorp shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.

Chicopee Bancorp shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

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