Citizens Republic sale to FirstMerit launches New York-based law firm into investigation
By Shaun Byron
GENESEE COUNTY, MI — A law firm in New York is investigating the sale of Citizens Republic Bancorp Inc. to Ohio- based FirstMerit Corporation.
It was announced Thursday morningthat FirstMerit Corporation was buying Citizens in a stock-for-stock deal valued at $912 million.
The website Dividend Channel is reporting Manhattan law firm Newman Ferrara LLP is investigating potential claims against the board of directors for Flint-based Citizens.
The report states shareholders for Citizens will be given “a fixed” 1.37 shares of FirstMerit common stock for each share of their Citizens stock.
The story, using FirstMerit’s average 10-day closing price ended Sept. 12, states Citizen’s shareholders would earn $22.50 a share.
This is an 11 percent premium on the stock, which is less than Citizens’ reported tangible book value of $24.97, according to the report.