National Penn Bancshares Inc. of Allentown has withdrawn its bid to buy the stock of First Mariner Bank of Baltimore after the Maryland District of the United States Bankruptcy Court decided to reopen the auction for the stock.
First Mariner Bank, a subsidiary of First Mariner Bancorp, filed for bankruptcy protection in February.
National Penn had been awarded the bid last week, but the award was contested by a competing bidder that said that it had the highest bid.
According to a report in the Baltimore Sun, a bid that included a company known as Priam Capital of New York and a group of Baltimore-area investors was valued at $150,000 more than National Penn's under the complex rules of the auction. However, it said that First Mariner Bancorp chose National Penn's bid because it felt it would be more likely to get quick regulatory approval.
"We remain disciplined in our approach to mergers and acquisitions, while focused on continuing to build long-term shareholder value," Scott Fainor, president and CEO of National Penn, said of the decision. "We are well positioned to participate in the consolidation of the industry and will continue to evaluate opportunities consistent with our strategic objectives."
National Penn Bank has about $8.6 billion in assets and operates 119 branch offices: 118 in Pennsylvania and one in Maryland.