12 C
Saturday, July 2, 2022
HomeBusinessHedge fund Driver Management pushes for sale at Codorus Valley Bancorp By...

Hedge fund Driver Management pushes for sale at Codorus Valley Bancorp By Reuters


Related stories

Rural livelihoods: Demand for MG-NREGS jobs still elevated

The demand for jobs under the Mahatma Gandhi...

Bitcoin (BTC) posts worst quarter in more than a decade: 5 reasons why

1. Macroeconomic pressureDuring the quarter, the U.S. Federal...

Feature Story Rise Integrated Expands into Podcast Space

Rise Integrated Expanding Its Content Marketing Service Into Podcast...

© Reuters.

By Svea Herbst-Bayliss

BOSTON (Reuters) – Activist investment firm Driver Management, which specializes in pushing small banks to improve their financial returns, has found a new target and is now urging Codorus Valley Bankcorp Inc to consider letting itself be bought, two sources familiar with the matter said on Tuesday.

Driver Management, founded two years ago by former investment banker Abbott Cooper, owns a 6% stake in Codorus, a bank holding company, and is expected to make a regulatory filing disclosing its stake and some of its intentions soon, the sources said.

Codorus, which is headquartered in York, Pennsylvania, is valued at $202 million and specializes in providing banking services through its subsidiary PeoplesBank in south central Pennsylvania and northern Maryland. Its share price has climbed 21% this year and traded at $20.20 on Tuesday.

The company did not respond to a request for comment.

Driver’s new investment comes as analysts are forecasting a pickup in mergers and acquisitions in the still-fragmented small bank sector. Driver has successfully pushed for other banks to be bought over the past two years.

Cooper wants Codorus to immediately hire a financial adviser to review all options including a sale, a source familiar with the fund manager’s thinking said.

He has expressed concerns to the bank about long-term underperformance and a lack of scale, and has offered to enter a standstill agreement if the bank seriously considers a sale, the source said.

For Driver, the new investment comes on the heels of a win. Last month United Bankshares (NASDAQ:) said that it would buy Community Bankers (NASDAQ:) Trust Corporation, which Driver had last year pushed to sell itself. Driver Management has gained roughly 48% since January, a person familiar with its return said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Latest stories