*

Truces with two banks come just weeks after HoldCo pressed

for

changes

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HoldCo has targeted a number of regional banks in wake of

Comerica ( CMA ) sale news

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Standoff between HoldCo and Eastern continues

By Svea Herbst-Bayliss

NEW YORK, Nov 6 (Reuters) - Two U.S. regional banks

averted boardroom fights with an activist hedge fund on Thursday

after it said both lenders made concessions that satisfied its

demands, for now.

HoldCo Asset Management, which spent months pushing a

handful of banks for strategic changes including halting new

acquisitions and possibly considering selling themselves, told

First Interstate BancSystem ( FIBK ) and Columbia Banking System ( COLB )

that it will lay down its arms.

"The company is finally pursuing the right path - and if it

stays there, we believe the next five years should deliver

exceptional shareholder returns," HoldCo portfolio managers Vik

Ghei and Misha Zaitzeff wrote to each company using the exact

same words, according to separate public presentations.

The truces come as more corporate agitators are flexing

their muscle and pushing companies across sectors including

yacht retailing, beverage and snacks, consumer health and

railroad, to make changes ranging from selling units to

replacing top executives.

HoldCo had urged Columbia and First Interstate to swear off

new acquisitions and securities restructurings in addition to

altering executives' and directors' compensation and to consider

a sale eventually.

Columbia's CEO, Clint Stein, told analysts last week: "I

have zero interest in M&A for the foreseeable future." First

Interstate CEO James Reuter made similar comments on his bank's

earnings call last week, saying it was focused on organic growth

and returning cash to shareholders.

Neither executive made firm promises for future actions.

First Interstate declined comment and Columbia did not

respond to a request for comment.

Still the executives' public statements on M&A persuaded

Ghei and Zaitzeff to abandon threats to nominate directors at

the banks' respective 2026 shareholder meetings, per Thursday's

statements.

The pair said though that they could resume their effort if

the boards take actions "inconsistent with our expectations."

Both companies' share prices were down slightly on a day the

broader market showed losses.

HoldCo, which has roughly $2.6 billion in assets and

specializes in investing in banks, has made a big splash in the

normally staid banking sector. By capitalizing on success in

calling for a sale at Comerica ( CMA ), HoldCo quickly pivoted

to push Columbia, First Interstate and Eastern Bancshares

to make considerable changes.

Industry analysts said HoldCo arrived with a broad set of

prescriptions for each bank but also said that the firm's theses

and ideas were extremely similar at each target.

At Eastern, the standoff continues with HoldCo pushing

harder for a deal and executives, including Executive Chairman

Robert Rivers, telling the Boston Globe last month that the bank

is not for sale.