SunTrust to acquire GB&T

Regional bank SunTrust Banks Inc. plans to acquire Georgia community bank GB&T Bancshares Inc. for $153.7 million in stock.

GB&T shareholders will receive 0.1562 shares of SunTrust common stock for each share of GB&T they own, according to a statement released by SunTrust on Friday.

Based on SunTrust's Thursday closing price of $69.13, GB&T shareholders will receive about $10.80 per share of GB&T. The $10.80 share price represents a 23 percent premium over GB&T Thursday closing price of $8.80 per share.

James Wells III, SunTrust's president and chief executive, said in a statement:

"With this transaction we're taking advantage of an unusually attractive and timely opportunity to efficiently expand our Metro Atlanta franchise in line with our long-term growth strategies and consistent with our high financial standards and disciplined approach to mergers."

GB&T operates 32 offices in north and central Georgia. As of Sept. 30, it had assets of about $2 billion and 500 employees. SunTrust expects to offer essentially all of GB&T's retail client contact employees jobs after the acquisition is complete.

As of Sept. 30, SunTrust had about $175.9 billion in total assets. The deal is expected to close in the second quarter of 2008.

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(The Associated Press)