Basswood Capital Reduces Stake In Pre-Merger Metro Bancorp Inc (METR)

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The stock has skyrocketed on August 4, following reports that the company is set to be bought by F.N.B. Corp (NYSE:FNB). Shareholders shall receive 2.373 shares of F.N.B. Corp for each Metro share they own, which translates into an approximate value of $32.xx per unit. This constitutes a 32% premium over Monday’s closing price of $24.78. This move will provide F.N.B. Corp with a $3.0 billion increase in assets and will help it  strengthen its position in its community banking system, with the company already operating the First National Bank of Pennsylvania.

“The combination is a tremendous opportunity for everyone involved with Metro. It will deliver significant value to Metro shareholders and an opportunity for our employees and customers to partner with one of Pennsylvania’s fastest growing and best performing banks. FNB has tremendous financial strength, considerable resources and capabilities and values that are very similar to ours,” said Gary Nalbandian, Metro Bancorp Chairman and CEO.

Hedge fund guru Jim Simons is also set to lock in some great profits from this deal, with his fund, Renaissance Technologies, holding 150,400 shares of Metro Bancorp Inc (NASDAQ:METR) at the end of the first quarter. David E Shaw also holds a stake in the company, albeit an insignificant one, having decreased it to just 8,742 shares.

Disclosure: none.

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