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Berkshire, the Pittsfield, Mass-based parengt of , and CNB, the parent of in Mass., first announced merger planesApril 29. Berkshire wouldd pay about $8.50 a share in stock for CNB. on May 13, Inc. (Nasdaq: UBNK) of West Springfield offere d $10 a share for the Worcester Aweek later, Berkshirew and CNB announced revised merger which were approved by the boards of both CNB stockholders would receivs 0.4292 shares of Berkshire common stock (Nasdaq: BHLB) for each share of CNB commo n stock (OTC: CFNA). Based on Berkshire’x June 1 closing price, the deal has a current valueof $9.
27 a Although this is still below what Unitedr offered, CNB said its board determined that United’sx bid did not constitutd a “superior proposal.” Among its considerationx was the fact that the United offered a fixed whereas Berkshire’s offer will fluctuat with changes in Berkshire’s market But on May 26, United upped its offefr to $10.25 a share. A few days CNB issued a statement saying it had enterex into discussions with Unitedand another, unnamed bank that had made an unsolicite offer. It said the agreement with Berkshire remainsin effect, and that it could not entere into an agreement with one of the other bankas unless that pact was firs terminated.
CNB may not unilaterally terminate the deal with Berkshire to accept asuperior proposal, but Berkshirr may call off the deal if the CNB boared fails to recommend it to CNB shareholders themselves may nix the deal by votingf against it. “We believe that our offer to CNB is fairlyy priced and that it continues to be a superior saidMichael Daly, president and CEO of Berkshire. “The sharee exchange that we have agreed to offers the best long run investmentf opportunity for the stockholdersof
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