trending Market Intelligence /marketintelligence/en/news-insights/trending/hQrN8PWcsA5LeFnC-Muj4g2 content esgSubNav
In This List

First United denies claims CEO admitted to withholding material information

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


First United denies claims CEO admitted to withholding material information

Oakland, Md.-based First United Corp. denied allegations made by activist investor Driver Management Co. LLC that CEO Carissa Rodeheaver admitted to intentionally withholding material information.

Managing Member Abbott Cooper accused Rodeheaver of withholding information such as whether the bank has engaged with advisers, their identities, and the planned next steps regarding a sale. Cooper, in a letter to the First United CEO, said this is evidence of the board's lack of accountability, which provides more evidence that the company should be sold to a larger peer.

"Nothing could be further from the truth and for Driver to make those assertions was not only disingenuous but irresponsible, with no intent other than to sow confusion with the Company's shareholders," Rodeheaver said in a statement.

Rodeheaver also said its board and senior management have been engaging with Driver's representatives since March and that the activist investor's subsequent securities filings have provided "a disingenuous recounting" of the dialogue that has taken place.

She said that correcting shareholder misperceptions stemming from Driver's assertions is wasting resources that could be used to execute its business strategy.

"As a result, while we have considered the feedback we have received to date from Driver, we believe that having our discussions devolve into a public spectacle is not an appropriate path forward for the Company, or one that will benefit First United’s shareholders," she said.

Earlier in September, Driver renewed its call for First United to sell, asserting that the bank's stock has consistently traded at a steep discount and its operating metrics are below its peers.

The bank then said the investor was launching a "distracting and costly public campaign," to which Driver responded, accusing First United's board of being solely concerned with maintaining their roles at the expense of shareholders.