SAN DIEGO and NEW IBERIA, La., Jan.
13, 2014 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the acquisition of Teche
Holding Company (NYSE MKT: TSH) ("Teche") by IberiaBank Corporation
(NASDAQ: IBKC). On January 13, 2014,
the two companies announced the signing of a definitive merger
agreement pursuant to which Teche shareholders will receive 1.162
shares of IberiaBank for each outstanding Teche share. Based
on IberiaBank's closing price on January 10,
2014 of $62.10, Teche
shareholders will receive $72.16 per
Teche share.
(Logo:
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Is the Proposed Merger Best for Teche and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Teche is undertaking a fair process to obtain
maximum value and adequately compensate Teche shareholders in the
merger.
As an initial matter, the $72.16
consideration represents a one day premium of just over 32% based
on IberiaBank's closing price on January
10, 2014. This one day premium is substantially below
the average one day premium of over 47% for comparable transactions
in the last five years. In addition, on October 24, 2013, Teche released its financial
results for the period ending September 30,
2013, in which it reported record earnings per share for the
fifth consecutive year. In particular, Teche reported a 20.2%
increase in earnings for the 2013 fiscal year. Further, Teche
increased its operating revenues to a record $48.5 million compared to $46.6 million for the 2012 fiscal year.
In commenting on the results, Patrick
Little, Teche's President and Chief Executive Officer,
stated: "For the last two quarters, both consumer and commercial
loans have had healthy increases, meanwhile, we've seen a slight
decrease in total mortgage loan balances. The consequence has been
a double-digit annualized growth rate for total loans and a good
overall loan mix."
Notwithstanding these promising business prospects, directors
and executive officers of Teche, who collectively owned 30.76% of
the company's outstanding stock as of December 16, 2013, agreed to enter into a support
agreement which provides that each will vote in favor of the
transaction.
Given these facts, Robbins Arroyo LLP is examining whether the
Teche board of directors are seeking to benefit themselves with
their decision to sell the company to IberiaBank now rather than
allow shareholders to continue to participate in the company's
continued success and future growth prospects.
Teche 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. Teche shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP