Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Virginia Commerce Bancorp Shares Spiked

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Virginia Commerce Bancorp (UNKNOWN: VCBI.DL  ) , a mid-Atlantic regional bank, popped as much as 10% after announcing a buyout of the company by United Bankshares (NASDAQ: UBSI  ) for $490.6 million.

So what: This deal should come as no surprise with Virginia Commerce announcing that it was shopping itself around a little more than two weeks ago. Under the terms of the deal, United Bankshares will use its common stock to finance the buyout, agreeing to 0.5442 of its shares for every Virginia Commerce share – or about $14 based on yesterday's close.

Now what: Not surprisingly, as well, the stock gave up much of its early gains and is now up just 5%, markedly below the offer price. With United Bankshares using its own shares as financing, Virginia Commerce could become a hostage to United's share price which is currently down on the day. In addition, as I mentioned a little more than two weeks ago, Virginia Commerce had already received a huge pop when it announced it was seeking a buyer, and was unlikely to find a large premium since it was already valued at a premium relative to its peers.

Craving more input? Start by adding Virginia Commerce Bancorp to your free and personalized Watchlist so you can keep up on the latest news with the company. 

The one big bank you can count on
Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable sta-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that both we and Warren Buffett love today in our new report. It's free, so click here to access it now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2225270, ~/Articles/ArticleHandler.aspx, 9/30/2016 8:06:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
UBSI $37.67 Up +0.60 +1.62%
United Bankshares CAPS Rating: *****
VCBI.DL $0.00 Down +0.00 +0.00%
Virginia Commerce… CAPS Rating: No stars