More complaints on proposed Waterford deal - Business First of Buffalo:

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Nearly 30 shareholders, includint former Waterford PresidentKathleen Flemming, have writtenn letters of objection to Richard Neiman, superintendent of the state Bankinbg Department. The letters request The proposed acquisition be delayed or rejected until the statr Banking Department determines whether the bank is following provisionzs of a cease and desist order issued in Bank shareholdersbe informed, in by the state Bankinhg Department about whether the terms of the ceaswe and desist order will continue if the bank is acquired. Full disclosuree of the financial impacg of the acquisition be included on the acquisition applicationn to the stateBanking Department.
The departmenyt discloses the potential financial impact toexisting shareholders. The department requires the bank to produc financial statements from the last two quarterz in 2008 and the firs two quartersof 2009. The letters, signefd by shareholders, were sent July 14 to the stat Banking Department as part of a package compiled by Joseph an attorney for LLP who is representing They follow a lettetr sent July 1 to the department by local businessmanHormos Mansouri, who made similar appeals.
In June, shareholderzs received a letter from Waterford Presidentg Orrin Tobbe outlining the proposed deal with VCH a new banking company that has requested permissioh from the state Banking Departmentto form. VCH Bank will be led by Jasonm Aintabi of NewYork who, under the proposed acquisitiohn agreement, would pay $9 millionh to acquire the At the time, Tobbe said the money will be used to make the bank and to allow the bank to invest in locao companies and residential mortgages. The deal must be approveed by the state Banking Department andthe bank’s shareholders. Under the shareholders would received two cente per each dollar invested inthe start-upl bank, Manna said.
But shareholders originally paid $10 per share, he Tobbe’s June letter, meanwhile, said shareholders would received 50 percent ofthe bank’z aggregate deposits at the time the acquisition is Jill Schultz, attorney for the said an “expansive” letter will be sent this week to shareholders that explains the proposed deal and answers shareholders’ Schultz, of the Burnsa & Schultz law firm in said Tobbe has received support from other “At least 45 percent (of the bank’s shareholders) have been talking to Orrinj Tobbe and have expressed that they are in of the acquisition, Schultz said.
It is uncleare how the remainingshareholders feel, she In a cover letter to Manna said that this group of shareholderse own about 18 percent of the bank’s total shares, an amount equal to more than $1.8 million. He said the bank’z board of directors “has not adequately communicated with the shareholderzs about the financial status of the the proposed merger or the cease anddesist order.” The Banking Boared was supposed to discuss the proposed acquisitionm earlier this month, but the meeting was The board is schedulefd to meet again on Aug. 6.