First Citizens Bancorporation, Inc (OTCMKTS:FCBN) Investor Investigation Over Potential Wrongdoing In Buyout

If you purchased shares of First Citizens Bancorporation, Inc (OTCMKTS:FCBN) and currently hold any of those OTCMKTS:FCBN shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
First Citizens Bancorporation
Affected Securities: 
OTCMKTS: FCBN

June 16, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of First Citizens Bancorporation, Inc (OTCMKTS:FCBN) shares, was announced concerning whether the takeover of First Citizens Bancorporation, Inc . by First Citizens BancShares, Inc is unfair to First Citizens Bancorporation stockholders.

The investigation by a law firm concerns whether certain officers and directors of First Citizens Bancorporation breached their fiduciary duties owed to OTCMKTS:FCBN investors in connection with the proposed acquisition.

On June 10, 2014, First Citizens BancShares, Inc. (NASDAQ: FCNCA) and First Citizens Bancorporation announced the signing of a merger agreement. Under the terms of the agreement, at closing each share of First Citizens Bancorporation will convert automatically into the right to receive 4.0 shares of First Citizens BancShares Class A common stock and $50 in cash, unless the holder elects for each share of such holder’s First Citizens Bancorporation common stock to be converted into 3.58 shares of First Citizens BancShares Class A common stock and 0.42 shares of First Citizens BancShares Class B common stock. Based on the closing price of First Citizens BancShares Class A common stock and the last price of First Citizens BancShares Class B common stock on June 9, 2014, and depending on whether the shareholders of First Citizens Bancorporation elect to receive the combination of First Citizens BancShares Class A common stock and cash or the combination of First Citizens BancShares Class A common stock and Class B common stock, the transaction is valued at between $636.9 million and $676.4 million.
Based on a closing price of $234.99 of First Citizens BancShares, Inc shares, First Citizens Bancorporation, Inc investors will receive approximately $1,025.96 per FCBN share.

However, given that following the takeover news FCBN shares rose in the open market to as high as $1029.50 per share, the investigation concerns whether the offer is unfair to FCBN stockholders. More specifically, the investigation concerns whether the First Citizens Bancorporation Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

First Citizens Bancorporation, Inc reported that its Net Income increased from $50.78 million in 2011 to $53.84 million in 2012. Shares of First Citizens Bancorporation, Inc (OTCMKTS:FCBN0 grew from $399.00 per share in December 2011 to as high as
$747.00 per share in May 2014.