Mercantile completes purchase

November 02, 1995|BY A SUN STAFF WRITER

Mercantile Bankshares Corp. said yesterday it completed its acquisition of Sparks State Bank in a deal valued at $49.5 million.

Sparks will become an affiliate of Mercantile, a $6.3 billion-asset banking company based in Baltimore. Sparks will retain its board of directors and employees.

Shareholders of the $200 million-asset Sparks will receive 2.33 shares of Mercantile common stock for each share they own. Sparks has 771,241 outstanding shares.

The final price was based on yesterday's closing price of $27.50 for Mercantile's stock.

The deal comes after a bitter fight this past summer waged by a handful of Sparks' shareholders who didn't want to sell to Mercantile.

Kenneth T. Bosley, the son of a former president of the bank, hoped to keep the small country bank independent.

Three other stockholders, sought a court injunction because they wanted Sparks' board to seek other, possibly more lucrative offers.

Mercantile has 16 other banking affiliates with offices in Maryland, Delaware and Virginia.

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