Indiana Community Bancorp (NASDAQ:INCB) Merger With Old National Bancorp Under Investor Investigation
San Diego, Jan. 26, 2012 (Shareholders Foundation) -- Following the announcement that Indiana Community Bancorp agreed to be acquired by Old National Bancorp prompted an investigation for investors in NASDAQ:INCB shares concerning whether the offer to acquire Indiana Community Bancorp and the buyout process are unfair to investors in INCB shares.
The investigations by law firms concern whether Indiana Community Bancorp, certain officers and directors, and/or others breached their fiduciary duties to Indiana Community Bancorp (INCB) investors in connection with the proposed acquisition.
On January 25, 2012, Indiana Community Bancorp (Nasdaq:INCB) and Old National Bancorp (NYSE:ONB) announced the execution of an agreement pursuant to which Old National Bancorp will acquire Indiana Community Bancorp through a merger. Under the terms of the proposed transaction, Indiana Community Bancorp shareholders will receive 1.90 shares of Old National Bancorp common stock for each share of Indiana Community Bancorp common stock held by them.
Based upon a $12.00 per share Old National Bancorp common stock price (stock price based on 20 day average from December 21, 2011, to January 20, 2012) the transaction is valued at approximately $79.2 million.
Following the takeover news shares of Indiana Community Bancorp (NASDAQ:INCB) rose from $14.51 on Jan 24 2012 to $21.20 per share on January 25, 2012.
However, the investigation for NASDAQ:INCB investors concerns whether the Indiana Community Bancorp Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to INCB shareholders by failing to adequately shop the Company before entering into this transaction. A potential securities class action lawsuit would seek to maximize the amount of money and information Indiana Community Bancorp (NASDAQ:INCB)shareholders would receive in a buyout, so the law firm.