A pair of investors urged Los Angeles-based to sell andsuggested that if the board is unwilling to explore a sale, it should buy out allother shareholders at the current higher price and fair value.
Peter Bortel of Tiburon Opportunity Fund LP and Josiah Hornblowerof Blue Pine Financial Opportunity Fund II LP wrote a letter to the CommonwealthBusiness Bank board and stressed that the "time is right" for the companyto explore a sale, given the current credit cycle and bank stock market performance.
They also noted that the company's shares are worth 70% to 90%more than their current trading value, and might fetch more than $19 per share,in the event of a sale. They believe that a potential sale is the only way to maximizeshareholder value.
The investors also think that Los Angeles-based and Los Angeles-basedBBCN Bancorp Inc. are thelogical buyers.
They highlighted that according to the company's most recentproxy statement, the board and company's management team own approximately 32% ofCommonwealth Business Bank's stock.