Centura Banks Rescinds Buyback as Part of Merger Plan

Centura Banks (CBC Quote) rescinded its stock buyback program as part of the bank holding company's pending acquisition by Royal Bank of Canada (RY Quote).

The bank, which is based in Rocky Mount, N.C., also declared a second-quarter dividend of 36 cents a share, a 5.9% increase from the prior rate. The dividend will be paid May 4 to shareholders of record April 24.

The company has repurchased 552,000 of the 1.5 million shares earmarked for the buyback program. The company hasn't been active in the market since December, and its pending sale to Royal Bank of Canada prevented any buybacks.

On the New York Stock Exchange, Centura gained 70 cents, or 1.4%, to $48.95. The Royal Bank of Canada was up 34 cents, or 1.16%, to $29.64 in recent trading.