Apr 17, 2014 12:51 PM by AP
NEW IBERIA, La. (AP) - Teche Holding Co. shareholders will decide whether to approve IberiaBank Corp.'s acquisition of the smaller company during a special shareholders meeting on May 28 in New Iberia.
Under the deal, Teche shareholders would get 1.162 shares of IberiaBank, of Lafayette, for each share of Teche stock.
Teche shareholders would receive about $161 million worth of IberiaBank stock, based on IberiaBank's closing price Jan. 10, the last trading day before the deal was announced.
The Advocate reports Teche board members already have unanimously approved the deal and recommended shareholders approve it.
IberiaBank officials have said they expect the merger to close during the second quarter.
Teche shareholders also will vote on a nonbinding proposal to approve the compensation that Teche executives may be paid in connection with the merger.
Under the proposal, Chairman, President and Chief Executive Officer Patrick O. Little would receive close to $2.5 million. The total includes $435,000 from IberiaBank for agreeing not to work for a direct rival.
Teche Senior Executive Officer and Secretary W. Ross Little Jr. would receive about $1.3 million, including $228,000 from IberiaBank for agreeing not to work for a rival firm.
Senior Vice President, Treasurer and Chief Financial Officer J.L. Chauvin, who will continue working for IberiaBank after the merger, would receive close to $1.8 million.