Robbins Arroyo LLP: Acquisition of Suffolk Bancorp (SCNB) by People’s United Financial, Inc. (PBCT) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Suffolk Bancorp (NYSE: SCNB) by People’s United Financial, Inc. (NASDAQ: PBCT). On June 27, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which People’s United will acquire Suffolk Bancorp. Under the terms of the agreement, Suffolk Bancorp shareholders will receive 2.225 shares of People’s United common stock for each share of Suffolk Bancorp common stock, for consideration valued at $33.55 based on People’s United’s closing price on June 24, 2016.
Is the Proposed Acquisition Best for Suffolk Bancorp and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Suffolk Bancorp is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On July 28, 2016, Suffolk Bancorp reported strong earnings results for its second quarter 2016. Suffolk Bancorp reported net income of $5.8 million for the three months ended June 30, 2016, a 13% increase from the same period of the prior year. Suffolk Bancorp also reported total deposits of $1.95 billion for the three months ended June 30, 2016, a 13.4% increase from the same period of the prior year. Additionally, Suffolk Bancorp has beaten analyst estimates for revenue, adjusted net income, and adjusted earnings per share for the past four consecutive quarters. In commenting on these results, Suffolk Bancorp President and Chief Executive Officer Howard C. Bluver remarked, “I am very pleased to report an outstanding second quarter… it is gratifying to see that our continuing Company-wide focus on high quality execution resulted in strong financial performance across the board.”
In light of these facts, Robbins Arroyo LLP is examining Suffolk 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.
Suffolk 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.
Suffolk 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.