WEST CHESTER, Pa. (
First Chester County Corp.
shares surged Monday on above-average volume after the bank was acquired in an all-stock deal worth $65 million.
First Chester County will be acquired by
in a deal that values the company at $10.22 a share, an 85.8% premium to First Chester County's closing price on Thursday of $5.50.
Under the terms of the agreement, each First Chester shareholder will receive 0.453 shares of Tower common stock for each First Chester share. The transaction is expected to be completed during the second quarter of 2010, pending regulatory approvals and the satisfaction of other closing conditions. Tower expects that this acquisition will immediately be significantly accretive to earnings per share.
Shares of First Chester County were jumping by $4, or 72.7%, to $9.50. Earlier in the session, the stock touched an intraday high of $9.90. More than 65,000 shares changed hands by 10:40 a.m. EST Monday, compared to the stock's three-month average daily volume of 5,100 shares.
First Chester County has a 5 million-share float with only 905 shares sold short as of Nov. 30, according to Yahoo! Finance. Insiders hold 21.2% of the company's shares, with another 6.7% owned by institutions.
-- Written by Robert Holmes in Boston
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