Territorial Bancorp Faces Uncertainty Amid Competing Acquisition Offers

As the shareholder vote on the Hope Bancorp merger nears, Territorial Bancorp grapples with a higher, yet uncertain, bid from Blue Hill Advisors.

Territorial Bancorp has postponed its shareholder vote on the merger with Hope Bancorp to November 6, citing a need to address competing offers.
Blue Hill Advisors, led by former Bank of Hawaii CEO Allan Landon, has increased its offer for Territorial to $12.50 per share, but faces skepticism over financial backing and regulatory approval.
Territorial's board remains committed to the $78.6 million all-stock deal with Hope Bancorp, emphasizing its benefits, including a higher dividend and greater scale.
Concerns about Blue Hill's offer include the anonymity of its investors, lack of committed financing, and potential regulatory hurdles.
Proxy advisor Institutional Shareholder Services has recommended against the Hope merger, suggesting that Blue Hill's offer, despite uncertainties, might offer better value.