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What: Brookline Bancorp
So what: First-quarter EPS of $0.12 met the consensus estimate and was up from $0.11 in the year-ago quarter. Brookline has agreed to acquire Bancorp Rhode Island
Now what: The acquisition is expected to close in the fourth quarter and be accretive to EPS by approximately 25% percent in 2012. Bancorp Rhode Island shareholders will receive $48.25 in cash and/or shares for each share they hold, a whopping 57% premium to yesterday's closing price of $30.71. Despite Brookline management expectations that the deal will be accretive, shareholders are justified in questioning the acquisition premium.
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.