Minority Owners Challenge Share Price of First Union Financial

by George Waldon  on Monday, Jan. 20, 2014 12:00 am  

Photo courtesy of SEArkToday.com

Barring a settlement, the court will decide if the price should be higher for the 11 dissenting shareholders.

Protest Letter

John Porter Price, a former director at Union Bank & Trust of Monticello, is among those who aren’t happy about the way the McClendon family chose to expand its controlling interest in the bank.

Price considered the legal move to force out minority shareholders in the bank’s holding company, First Union Financial Corp., to be predatory in nature. He asked to be removed as an honorary board member of the $182.3 million-asset bank in a letter to Zach McClendon Jr., chairman of Union Bank & Trust and chairman and CEO of First Union Financial Corp.

“This is a sad moment for me because of my long association with said institution. I feel this is the only option I have because the bank is now taking a course that I feel is counter to the best interest of its stockholders.

“It is a course that is contrary to a long history of fairness and honesty that Union Bank has always been known for. I feel that no longer exists.

“My only regret is that I am only now speaking out. My defense is that I was furnished so little information about the buyout that I only recently became aware of just how unfair this buyout is.

“I think it is shameful that stockholders, who have stuck with the bank through all its problems, have endured 10 years of no dividends, and now just when the bank could start paying returns, they suddenly learn they are being asked to sell for a fire-sale price.

“This course of action has already done irreparable damage to the bank.

“The public is wondering if the bank cares no more for its stockholders than this, what my value as a customer is. This is not about money; it is about integrity and honesty.”

Please place this document in the board minutes.

Sincerely,

John Porter Price

 

 

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