Bank Mergers and Acquisitions: Recent Deals and Activity

Premier Bancshares Inc. has announced a definitive agreement to acquire Farmers & Merchants Bank for $56 million, based on the bank's closing stock price. This deal comes as LHS Group Inc. has signed a similar agreement to acquire Priority Call Management Inc. for 5.2 million diluted shares, valued at $162 million. Meanwhile, a consortium including Southern Co. has revised its bid for Cajun Electric Power Cooperative, knocking $200 million off its original price of $1.188 billion. These developments highlight the ongoing activity in the banking and telecommunications sectors.

Key Takeaways:

• Premier Bancshares Inc. will acquire Farmers & Merchants Bank for $56 million, with the latter operating three branches and possessing $173 million in assets.
• LHS Group Inc. will acquire Priority Call Management Inc. for 5.2 million diluted shares, valued at $162 million, which will combine the companies' revenue of $194 million and $163.2 million in 1998.
• The Embassy Suites at Centennial Olympic Park will sponsor a job fair to fill approximately 150 positions for its scheduled June opening, while Ruth's Chris Steakhouse will also hold interviews for up to 100 roles.
• A consortium including Southern Co. has revised its bid for Cajun Electric Power Cooperative to $960 million, offering the 11 electric power cooperatives an option to go to alternate suppliers.
• AGCO Corp. has withdrawn its offer to acquire certain assets of Great Plains Manufacturing Inc. due to inconsistencies with its cost structure.

Statistics:

• Premier Bancshares Inc. has assets of $1.5 billion.
• Farmers & Merchants Bank has $173 million in assets.
• LHS Group Inc. had 1998 revenue of $163.2 million.
• Priority Call Management Inc. had 1998 revenue of $194 million.