October 1, 2013 (Shareholders Foundation) - An investor, who currently hold shares of MetroCorp Bancshares, Inc. (NASDAQ:MCBI), filed a lawsuit in effort to halt the proposed takeover of MetroCorp Bancshares, Inc. by East West Bancorp, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:MCBI stockholders arising out of the attempt to sell MetroCorp Bancshares, Inc. too cheaply via an unfair process to East West Bancorp, Inc.

On September 18, 2013, East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, and MetroCorp Bancshares, Inc. (Nasdaq: MCBI), parent of MetroBank, N.A. and Metro United Bank, announced that they have entered into an agreement for the merger of MetroCorp Bancshares into East West Bancorp.

Under the terms of the agreement, East West Bancorp will acquire the outstanding shares of MetroCorp Bancshares for the lesser of $14.60 per share and 1.72 times the per share tangible equity, as adjusted, for an aggregate purchase price of approximately $273 million based on the 18,699,638 shares currently outstanding.

However, the plaintiff alleges that the offer is unfair and grossly inadequate to NASDAQ:MCBI stockholders. Indeed, MetroCorp Bancshares’ performance improved lately. For instance, it reported that its annual Net Loss of $7.07 million in 2009 turned into a Net Income of $11.12 million in 2012. Shares of MetroCorp Bancshares, Inc. grew from $2.47 per share in late 2010 to as high as $11.37 per share in July 2013.

On Oct. 1, 2013, NASDAQ:MCBI shares closed at $13.80 per share.