SAN DIEGO & SPRINGFIELD, Mass., Nov. 4, 2014 /PRNewswire/ -- Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the
proposed acquisition of Hampden Bancorp, Inc. (NASDAQ: HBNK) by
Berkshire Hills Bancorp, Inc. (NYSE: BHLB). On November 4, 2014, the two companies announced the
signing of a definitive merger agreement pursuant to which
Berkshire will acquire Hampden and
its subsidiary, Hampden Bank.
Under the terms of the agreement, Hampden shareholders will receive
0.81 shares of Berkshire Hills common stock for each share of
Hampden common stock owned, for a consideration of $20.53 per share based on Berkshire's closing price on November 3, 2014.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/hampden-bancorp-inc
Is the Proposed Acquisition Best for Hampden and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Hampden is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the proposed consideration represents a
premium of 20.8% based on Berkshire's average closing price for the five
day period ending November 3, 2014.
This premium is significantly below the average one-week premium of
over 35% for comparable transactions within the past five years.
Further, on November 4, 2014, Hampden
released its earnings results for the quarter ended September 30, 2014. In particular, Hampden
reported an increase in net interest income of 9.1%, compared to
the same period in 2013. Hampden also increased cash, and
cash equivalents increased by $5.7
million, or 44.9%, from June 30,
2014 to September 30, 2014. In
commenting on these results, Glenn S.
Welch, President and Chief Executive Officer, remarked,
"Earnings remained stable compared to first quarter fiscal 2014 and
prior quarter. However, net interest income showed an increase
compared to first quarter fiscal 2014 and prior quarter as a result
of the significant loan growth and an improvement in our asset
yield with our continued emphasis on growing commercial loans…. We
believe our loan growth and an emphasis on expense control will
allow us to continue to report strong earnings and deliver
sustainable stockholder value."
In light of these facts, Robbins Arroyo LLP is examining
Hampden'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.
Hampden 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.
Hampden shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003 or
ddonahue@robbinsarroyo.com.
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
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP