Acquisition of LNB Bancorp Inc. (LNBB) by Northwest Bancshares Inc. (NWBI) May Not Be in Shareholders' Best Interests

News provided by

Dec 16, 2014, 04:13 ET

SAN DIEGO and LORAIN, Ohio, Dec. 16, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of LNB Bancorp Inc. (NASDAQ: LNBB) by Northwest Bancshares, Inc. (NASDAQ: NWBI). On December 15, 2014, the two companies announced the signing of a definitive merger agreement. Under the terms of the agreement, LNB Bancorp shareholders will receive $18.64 for each share of LNB Bancorp common stock.

View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/lnb-bancorp-incorporated

Is the Proposed Acquisition Best for LNB Bancorp and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at LNB Bancorp is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

As an initial matter, the $18.64 merger consideration represents a premium of only 7.9% based on LNB Bancorp's closing price on December 12, 2014. This premium is significantly below the average one-day premium of 42.4% for comparable transactions within the past year.

On October 29, 2014, LNB Bancorp released its earnings results for its third quarter 2014, reporting strong quarterly earnings. Specifically, LNB Bancorp reported net income available to common shareholders of $2.1 million, a 48% year-over-year increase. In addition, the company reported loan increases of $15.1 million or 6.7% annualized during the quarter, as well as a 36% increase in noninterest income from higher gains on sale of loans and improved trust income. In commenting on these results, LNB Bancorp President and Chief Executive Officer Daneil E. Klimas remarked, "Overall, we are very pleased with the third quarter results. We've seen solid loan growth and improvement in credit quality continued, reducing charge-offs and the provision for loan losses."

In light of these facts, Robbins Arroyo LLP is examining LNB Bancorp's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

LNB Bancorp shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. LNB Bancorp shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

Logo - http://photos.prnewswire.com/prnh/20130103/MM36754LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/acquisition-of-lnb-bancorp-inc-lnbb-by-northwest-bancshares-inc-nwbi-may-not-be-in-shareholders-best-interests-300010759.html

SOURCE Robbins Arroyo LLP