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Bank investor retorts after First United decries call for sale

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Bank investor retorts after First United decries call for sale

Activist U.S. bank investor Driver Management Co. LLC hit back at First United Corp. Chairman, President and CEO Carissa Rodeheaver for branding Driver's lobbying for the bank's sale as a "distracting and costly campaign."

In a letter, Driver Management Managing Member Abbott Cooper accused Rodeheaver and the board of directors of being singularly concerned about maintaining their roles within the company "even at the risk of shareholder value being impaired by First United's continued stagnation and underperformance."

Cooper also pointed out that Driver Management owns more common shares than the entire community bank's board.

"None of the First United director owns even 15% of the number of shares owned by Driver even though directors on average have had over 15 years of service on the board to acquire shares," he wrote.

He added that from March 25, the day before the activist investor first called for a sale, up to Sept. 6, First United's stock has outperformed its peers, which he credited to market expectations of a looming sale.

"Given that Driver is unable to identify any evidence of material improvement in First United’s financial performance during this time, Driver believes that this outperformance is primarily a result of investor expectations that First United will engage experienced financial advisers and pursue a sale transaction," Cooper wrote.