Judge Sinks BankAtlantic Asset Sale To BB&T

Law360, Wilmington (February 27, 2012, 10:13 PM EST) -- A Delaware judge on Monday blocked the proposed sale of BankAtlantic Bancorp Inc.'s prime assets to BB&T Corp., finding the deal violated the contractual rights of investors in the Florida bank's trust-preferred securities.

In November, TruPS investors led by Hildene Capital Management LLP sued to bar the transaction in Delaware Chancery Court. They alleged the deal improperly allows BB&T to cherry-pick Bancorp's choice assets — a 78-branch savings bank, high-quality loans and $3.3 billion in deposits — while leaving behind a “carcass” of questionable assets backing...
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