Columbine Capital Corp. in January directed its financial adviser D.A. Davidson & Co. to set up a meeting with Randall Chesler, president and CEO of Glacier Bancorp Inc., to explore an interest in a business combination. Columbine Capital's board had identified Glacier, among other entities, as a potential merger partner due to Glacier's "successful track record with other acquisitions," among other things.
Three other parties contacted Columbine Capital to express interest in acquiring the Buena Vista, Colo.-based company, according to a Form S-4 filed Aug. 3. One party approached Columbine Capital Chairman and CEO David Boyles to express its interest in a merger immediately after another bank sale was announced in the Colorado market. It submitted a letter of interest setting forth the proposed terms of a merger, including the principal financial terms.
On March 14, Glacier delivered a nonbinding letter of intent setting forth the proposed terms of the merger.
Both proposals were reviewed, with Columbine Capital eventually agreeing to strike a deal with Kalispell, Mont.-based Glacier. The final terms include a termination fee of $500,000, in case of specified breaches, and a break-up fee of $3.0 million to be paid under certain circumstances.
The deal was announced June 6.