Omega Financial rise on buyout news
Shares of Omega Financial Corp. (Nasdaq: OMEF) are rising following news before the start of trading that the bank holding company is being purchased by F.N.B. Corp. (NYSE: FNB) for about $393 million.
State College, Penn.-based Omega Financial and F.N.B. jointly announced that that they have signed a merger agreement according to which Omega will be acquired in an all-stock transaction. Omega’s shareholders will receive 2.022 shares of Hermitage, Penn.-based F.N.B.’s common stock.
“Uniting with F.N.B. is an exciting strategic opportunity given its like-minded culture of strong localized customer service, exceptional array of financial service products for commercial and household customers and commitment to providing a strong cash-based return in its value proposition for shareholders,” said Omega president and CEO Donita Kaval in a statement.
The combination of the two companies, which has been unanimously approved by both boards and is scheduled for completion in the second quarter of 2008, will create the fifth largest bank holding company based in Pennsylvania, with approximately $8 billion in total assets.
Omega Financial currently operates through its subsidiary, Omega Bank and four active non-bank subsidiaries.
At 3:50 p.m. ET, shares of Omega Financial Corp. (OMEF) had added $4.30, or 16%, to $30.52. The 52-week high of $34.49 was reached on Jan. 31, while the 52-week low of $20.97 was set on Aug. 6.
