Fifth Third Bancorp to Buy CNB Bancshares

Midwest banking company Fifth Third Bancorp said it agreed to buy CNB Bancshares for about $2.4 billion in stock to expand its presence in neighboring Indiana. Cincinnati-based Fifth Third agreed to pay 0.8825 share for each share of CNB, valuing the largest independent bank in Indiana at $59.68 a share, a 44% premium over Tuesday’s close. Shares of Evansville, Ind.-based CNB climbed $13.81, or 32%, to close at $55.25 on the New York Stock Exchange, and Fifth Third’s shares fell $2.78 to close at $64.84 on Nasdaq. The purchase would give Fifth Third a total of $6.8 billion in assets and a 6.4% deposit market share in Indiana. Fifth Third said it wants to expand in Indiana because recent mergers have left customers dissatisfied.