Originally published June 3, 2008 at 12:00 AM | Page modified June 3, 2008 at 6:16 PM
Whidbey bank cancels planned sale to Frontier Financial
Frontier Financial's planned acquisition of Washington Banking was called off by the smaller bank, which said an eight-month delay in winning regulatory approval amounted to "a breach of Frontier's representations and warranties."
Washington Banking, owner of 19-branch Whidbey Island Bank, called off its planned sale to Everett-based Frontier Financial, blaming the larger company for not winning regulatory approval of a deal announced more than eight months ago.
A statement from Washington Banking on Tuesday said Frontier's inability to obtain the needed approval amounted to "a breach of Frontier's representations and warranties contained in the merger agreement."
Shares of both companies have fallen sharply since the deal was announced in late September.
Frontier Financial, the operator of 47 commercial-banking branches in Western Washington, planned to acquire Oak Harbor-based Washington Banking for about $191 million in cash and stock.
When the deal was announced, Washington Banking's shareholders were slated to get about 5.92 million Frontier shares and $42.9 million in cash, valuing their Oak Harbor-based company at $21.40 a share.
But Frontier stock, above $23 when the deal was announced, has been trading below $15 in recent weeks.
Washington Banking said in regulatory filings that their agreement called for Frontier to raise its payment if the stock it was using as currency declined below a certain threshold. But Frontier did not announce an increased offer.
Washington Banking shares closed today at $12.50, up 15 cents, or 1.2 percent. Frontier Financial closed at $14.54, down 32 cents, or 2.2 percent.
Copyright © 2008 The Seattle Times Company
Nintendo re-enlists Mario, savior of video-game industry
Verizon-Frontier deal stirs concern among consumers
Brier Dudley: 'Guitar Hero' founder excited about future
Gaps for consumers in Democrat health care bills
Hutch gets $10M from Bezos family for immunotherapy research

PNW Magazine | Easy As Pie
A little friendly competition between professional pie-baker Kate McDermott and The Seatttle Times' Kathleen Triesch Saul is handled with great taste.
nwautos
Local riders say they've seen a surge in scooter interest in recent years, mostly from people wanting another commuting option. Seattle now ranks as o...
Post a comment
nwjobs
Post a comment
Michelle Goodman blogs about work/life balance.
Do you suffer from "sitting disease"?
Post a comment
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Tugboat sinks at Seattle waterfront pier
- Illegal workers quietly let go
- Child-support error costs nearly $21,000
- Vikings easily beat the Seahawks
- Craigslist adoption ad: A plea by young mother-to-be? A scam?
- Chase shrugs off loss of CD investors
- Woman stabbed by stranger in North Seattle
- Snow piles up on Cascade slopes
- Denny Triangle gains skyline, but tenants slow to come
- Illegal workers quietly let go
396 - Climate change speeds up since 1997 Kyoto accord
213 - Metro won't cut bus service after all
160 - New Husky recruit: Enes Kanter
102 - Tattoos at Mill Creek Church pierce skin, soul
85 - Middleton says Huskies "plan on scoring at least 50 points'' Saturday
84 - Jerry Brewer: Seahawks can't lean on the Hutch Crutch now
75 - Bellevue residents blast new bikini espresso stand
71 - Seattle woman charged with knife attack on boyfriend's ex
71 - UW, WSU once again meet to see who's worse
68
- Sprouts, raw fish on attorney's 'do not eat' list
- Tattoos at Mill Creek church pierce skin, soul
- Food-safety lawyer's wish: Put me out of business
- Illegal workers quietly let go
- Architects, chefs find 'kid' within to build Gingerbread Village
- Rediscovering Moab, 'the most beautiful place on Earth'
- It's possible to recover a life lost to hoarding
- Child-support error costs nearly $21,000
- 'The Road' takes Viggo Mortensen to Mount St. Helens and Astoria, Ore.
- Taste | The Great Pie Bake-off pits friends and fruit





