April 27, 2015 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Palmetto Bancshares Inc (NASDAQ:PLMT), was announced concerning whether the takeover of Palmetto Bancshares Inc by United Community Banks, Inc is unfair to NASDAQ:PLMT stockholders.

The investigation by a law firm concerns whether certain officers and directors of Palmetto Bancshares Inc breached their fiduciary duties owed to NASDAQ:PLMT investors in connection with the proposed acquisition.

On April 22, 2015 United Community Banks, Inc. (Nasdaq:UCBI), the holding company for United Community Bank, and Palmetto Bancshares, Inc., the holding company for The Palmetto Bank, announced the signing of an agreement pursuant to which Palmetto Bancshares Inc will merge with and into United Community Banks, Inc. Under the terms of the agreement Palmetto Bancshares Inc (NASDAQ:PLMT) shareholders will have the right to receive $19.25 in cash or 0.97 shares of United Community Banks, Inc common stock, or any combination thereof, for each share of Palmetto Bancshares Inc (NASDAQ:PLMT) common stock.

However, given that at least one analyst has set the high target price for NASDAQ:PLMT shares at $20.25 per share, the investigation concerns whether the offer is unfair to NASDAQ:PLMT stockholders. More specifically, the investigation concerns whether the Palmetto Bancshares Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.