Jerry Host, president and chief operating officer of Trustmark National Bank, said this afternoon he didn”t know why Cadence Bank canceled a deal between the two for Trustmark to acquire Cadence.
Host said Trustmark received notice this morning that Cadence was sending a $2 million termination fee, as outlined in the agreement.
“We don”t know why Cadence made the decision to cancel the definitive agreement with us,” Host said. The original merger decision was agreed upon by both banks” boards of directors, Host said.
“It”s not really going to change our plans as far as our desire to do financially sound acquisitions that are strategically sound from a financial status,” Host said. “We constantly look at acquisition opportunities. We”ll continue to do that as Cadence takes a different direction.”
Host said that the notice of termination, in his experience, was unusual.
“In my 26 years being involved in banking and acquisitions, it”s the first time we”ve had someone who has signed a definitive agreement with two boards and then terminate that agreement,” he said.
Cadence announced this morning that it was walking away from a deal struck with Trustmark last week, which would have paid Cadence shareholders $2 a share in Trustmark stock. Trustmark agreed to pay the federal government $30 of the $44 million Cadence owes in the Troubled Asset Relief Program, or TARP.
This morning, Starkville-based Cadence said it was selling to a privately held Houston-based holding company, Community Bancorp. Cadence shareholders will be paid $2.50 per share in cash, and Community Bancorp will pay the government $38 million in TARP money.
The deal still requires regulatory and Cadence shareholder approval.
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