Eastern Bank Executive Assures No Sale Plans
Bob Rivers, the executive chairman of Eastern Bank, reassured everyone on Friday that there won’t be a “For Sale” sign on the bank anytime soon. This comment came in response to inquiries regarding investor actions tied to Eastern’s holding company.
A recent Reuters article noted that Holdco Asset Management, a hedge fund from Florida, has gained nearly a 3% stake in Eastern, though it hasn’t hit the 5% mark necessary to force the company into public disclosure. The founders, Vic Gay and Misha Zaitsev, have critiqued Eastern’s recent acquisitions, particularly targeting upcoming deals like the one involving Harbor One Bank, which is set to close soon. They expressed a preference for Eastern to halt its buying spree and instead explore a sale to larger banking entities. Following the report, shares in Eastern’s holding company experienced a 5.5% rise, attributed to the news of higher acquisition costs.
The Reuters coverage also reflected on Holdco’s activities with Comerica, where similar pressures were applied for a sale, which ultimately led Comerica to sign an $11 billion agreement with Fifth Third Bank just this month. Now, it seems Holdco is gearing up for a potential proxy fight at Eastern.
Responding to the situation, Rivers issued a clear message to both staff and the media: “We are not for sale.” He emphasized confidence in their long-term strategy and the commitment to enhance shareholder value. “We have established a prominent bank in Eastern Massachusetts, with a strong dedication to serve our customers, communities, and colleagues, showcasing profitable returns and success,” he stated.
