Bancorp Rhode Island investor wonders if company missed a chance with Chittenden

By Lisa Kerner

Charlotte, N.C., June 28 - Bancorp Rhode Island, Inc. investors led by PL Capital Group contacted the company's board of directors on news of the $1.9 billion merger of People's United Financial, Inc. and Chittenden Corp.

"Unfortunately for Bancorp Rhode Island's shareholders, with Chittenden gone, there is now one less potential merger partner for Bancorp Rhode Island," the investors said in a letter included as part of a schedule 13D filing with the Securities and Exchange Commission.

"We always thought Chittenden and Bancorp Rhode Island made tremendous sense as merger partners. It would be unfortunate for Bancorp Rhode Island's shareholders, and a failure by Bancorp Rhode Island's board and management, to find out that Chittenden had approached Bancorp Rhode Island in the recent past and been rebuffed."

The investors believe that People's management is interested in expanding into the Rhode Island market and recommended the board move to explore strategic alternatives with People's.

Regarding Bancorp Rhode Island chief executive officer Merrill W. Sherman's four-week China vacation, PL Capital principals Richard Lashley and John Palmer said, "We cannot help but be frustrated that she was reportedly off vacationing in China for 4 weeks in late May and early June (we also heard it may have been as long as 6 weeks) while the CEO of Chittenden was back in Burlington negotiating a wonderful transaction for Chittenden's shareholders. We also hope her vacation and numerous non-profit activities have not impeded the progress on earnings we have long awaited for and look forward to seeing in the upcoming quarterly press release."

PL Capital Group owns 385,420 shares of Bancorp Rhode Island stock, or 7.9% of the outstanding shares, and paid $13,719,310 to purchase the shares.

Bancorp Rhode Island is based in Providence, R.I., and is the holding company for Bank Rhode Island, which provides commercial banking services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.