Hanmi Withdraws Proposal to Merge with BBCN Bancorp

By Paul Davis December 17, 2015, 9:27 a.m. EST 1 Min Read

Hanmi Financial in Los Angeles has withdrawn its proposal to merge with BBCN Bancorp.

The $4.2 billion-asset Hanmi said in a press release Thursday that its decision follows the $7.6 billion-asset BBCN's agreement to buy Wilshire Bancorp. BBCN's agreement with the $4.7 billion-asset Wilshire includes a $40 million breakup fee.

"While we strongly believe that Hanmi's proposal was superior to BBCN's announced agreement with Wilshire, as a disciplined acquirer, we have concluded that, at this time, continued pursuit of a combination with BBCN is not in the best interests of our stockholders," Hanmi's board said in the release.

Hanmi's board said the breakup fee of the BBCN-Wilshire deal would have increased the effective cost of its $1.6 billion unsolicited offer to merge with BBCN by 50 cents a share. (BBCN's agreement with Wilshire is valued at roughly $1 billion.)

"Hanmi remains focused on its disciplined growth strategy," the board added. "Hanmi's superior capital and liquidity positions will also allow us to capitalize on the dislocation that the announced BBCN-Wilshire combination is creating."

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