Pacific Capital Investor Challenges $1.5B Union Bank Deal

Law360, Wilmington (March 21, 2012, 3:41 PM EDT) -- A Pacific Capital Bancorp shareholder on Tuesday launched a class action in Delaware court challenging Union Bank NA's bid to acquire the rival California bank, calling the $1.5 billion offer grossly inadequate.

The complaint, filed by Ernesto Rodriguez in Delaware Chancery Court, paints Union Bank’s offer as opportunistic and contends that Pacific Capital’s directors breached their duty to shareholders by signing off on the deal.

“Given the company’s recent strong performance and its positioning for growth, the proposed transaction consideration is inadequate and undervalues the company,”...
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