* To pay $13.35 in stock, offer at 148 pct premium
* Monroe shrs more than double, highest gainer on Nasdaq
* Old National stock falls as much as 10 pct
Oct 6 Old National Bancorp ONB.N said it
agreed to buy Monroe Bancorp MROE.O for about $83.5 million
in a stock deal to strengthen its Indiana network.
Monroe shareholders will get 1.275 shares of Old National
for every share held, valuing the stock at $13.35, a premium of
148 percent to its Tuesday close.
The exchange ratio will be adjusted if Old National's share
price exceeds $10.98 at the time of closing of the deal. In
such event, Monroe shareholders will get $14 of Old National
stock for each share held, Old National said in a statement.
Bloomington, Indiana-based Monroe's banking unit, with
about $850 million in assets, has 15 banking centers in central
and south central Indiana.
The deal is expected to close by the end of the year or
early in the first quarter of 2011, it said.
Sandler O'Neill advised Old National, while Howe Barnes
Hoefer & Arnett advised Monroe Bancorp.
Old National stock, which has gained about 7 percent in
value in the last one month, was down 4 percent at $10.07 in
morning trade on the New York Stock Exchange, while Monroe's
stock more than doubled in value to $11.30 in morning trade on
Nasdaq. Monroe touched a high of $11.98 in early trade.
(Reporting by Abhinav Sharma in Bangalore; Editing by