A Case of Scalping Shareholders at the Fork in the Road
Disclosure: As of this posting, I do not own shares of MFNC but may subsequently purchase them.
MFNC would make a nice acquisition target for any of the following banks, but by going forward with its recent dilutive capital raise, management missed the opportunity to obtain a great price for the bank.
Chemical Financial, Midland, MI (CHFC)
Fifth Third Bancorp, Cincinnati, OH (FITB)
(as of 06/30/2012)
Paul D. Tobias, Chairman and CEO
Kelly W. George, President
Ernie R. Krueger, CFO and Executive VP
THE "CRIME": MFNC under Tobias' leadership executed a rights offering that diluted shareholders and socked TBV by at least 15%.
THE CROSSROADS: MFNC faced three more responsible and humane options than the dilutive capital raise it chose: