UPDATE ON THE UPDATE: Here’s a (link ) to a very interesting story from our sister paper, the Tacoma News-Tribune, about how the Internet rumors have been impacting Frontier’s stock.
It appears buyout rumors is what has been fueling the changes taking place this week with Everett-based Frontier Bank’s stock. On Monday the stock price, which had been in the $3 range, zoomed to $7.75 a share, before falling a bit.
The stock rise came as a surprise to many people, so much so Frontier Bank CEO Patrick Fahey had to issue a statement. Here it is:
Management of Frontier Financial Corporation (Nasdaq: FTBK) (“Frontier”) recently learned of rumors on the Internet on April 26, 2010, that an investment group called Infinite Freedom Foundation was in the process of making a bid for Frontier. Frontier’s presidentand chief executive officer, Patrick M. Fahey, said that while normally he would not as a matter ofcompany policy comment on rumors, given the recent speculation on the Internet and elsewhere, he advises that to the company’s knowledge there is no basis for the rumor.
On Thursday the stock closed at $4.60 a share. There has been no further updates about the bank trying to find a buyer, or what the FDIC might do since its 30-day corrective action order expired earlier this month.