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Old Line Bancshares beats 4 others in bid to acquire Bay Bancorp

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Old Line Bancshares beats 4 others in bid to acquire Bay Bancorp

Columbia, Md.-based Bay Bancorp Inc., which in October 2016 began considering the merits of a potential strategic merger with another company, sought advice from Keefe Bruyette & Woods and Hovde Group regarding the current situation of the M&A market.

In June 2017, the company decided to pursue looking for a merger partner and ultimately chose Hovde Group to be its financial adviser.

On June 26, Bay Bancorp President and CEO Joseph Thomas met with Old Line Bancshares Inc. President and CEO James Cornelsen. Old Line had been considering strategic potential acquisitions since 2010. The two executives agreed to engage in further discussions after signing a confidentiality agreement, which Hovde provided to Old Line later that day.

Old Line then submitted an initial written indication of interest. The company proposed to acquire all of Bay Bancorp's outstanding and issued stock for $11.40 per common share, for a total of around $122.6 million, payable in Old Line common shares.

Around this time, Hovde also received letters of interest from four other companies with which it had entered into confidentiality agreements. However, on or about July 31, Hovde informed Old Line that Bay Bancorp wishes to explore a potential transaction with the company based on its initial letter of intent.

The two companies continued their negotiations throughout the next couple of months, wherein the deal consideration was increased to $11.80 per share.

The parties then executed their merger agreement on Sept. 27 and announced the deal after markets closed that day.