According to a press release there is an investigation ongoing on behalf of Provident Bankshares Corp. (NASDAQ: PBKS) investors breaches of fiduciary duty and other violations of state law by the board of directors of Provident Bankshares Corp.

According to the press release by a law firm the investigation focuses on potential breaches of fiduciary duty and other violations of state law by the board of directors Provident Bankshares Corp. (NASDAQ: PBKS) arising out of their attempt to sell the Company to M&T Bank Corp. (M&T Bank). Under the terms of the agreement, shareholders of Provident will receive 0.171625 shares of M&T Bank for each share of Provident they own. Based on M&T Banks Thursday closing price of $59.72, shares of Provident are valued at $10.25 for a total transaction value of $401 million. The transaction price, so the investigation, is unfair given that, as recently as October 3, 2008, the Companys shares traded at $12.88 per share.