$210 MILLION MERGER PLANNED; GLENFED PARENT BUYING SMALLER CENFED FINANCIAL.Byline: Enrique Rivero / Daily News Staff Writer Golden State Bancorp Inc., the parent company for Glendale Federal Bank, said Monday it has agreed to acquire Pasadena-based CenFed Financial Corp. in a $210 million deal that will create a statewide bank with $18.5 billion in assets. ``Our ultimate goal is to increase shareholder value, and this acquisition does that for us, and it does it very effectively,'' said Golden State spokesman Ken Preston. The agreement calls for an exchange of 6.9 million shares of Golden State common stock for 5.73 million shares of CenFed's outstanding common stock on a 1.2-to-1 ratio, Preston said. Among other benefits, the merger will move Golden State into markets such as Cypress and Marina del Rey Del Rey may refer to:
The deal will also transfer CenFed's $125 million in Small Business Administration loans, making Glendale Federal the state's fourth-largest servicer of SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government loans, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Preston. There are 18 CenFed branches in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Orange, Riverside and San Bernardino San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. counties, with a total of 400 employees, Preston said. Some of those branches are expected to close, and some positions will be eliminated because of overlap, he said. Eight of CenFed's 18 branches are located within a mile of a Glendale branch. There will be ``plenty of opportunity'' for CenFed employees to move to GlenFed offices, Preston said. ``I don't think in the end there will be a lot of people laid off. It will be a small number.'' The deal is expected to result in about $30 million in pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges to Golden State. Ed Dillon, executive editor of SNL SNL Saturday Night Live SNL Sandia National Laboratories SNL School for New Learning (Depaul University) SNL Springfield News-Leader (Missouri newspaper) SnL Sweet N Low SNL Standard Nomenclature List Securities' publication Bank Mergers and Acquisitions, said the acquisition illustrates the ongoing trend that started about three years ago of smaller financial institutions being gobbled up by larger ones. ``I think you'll continue to see that for the near term; it's hard to tell how long,'' Dillon said. The acquisition was valued at $210 million based on Friday's stock prices, but that value could change by the time the merger is complete in four to six months. Golden State's stock closed Monday at $28.19, down from Friday's $28.69. CenFed closed at $33.38, down from $34. GOLDEN MERGER Golden State Bancorp., parent company of GlenFed Bank, proposed buying CenFed for about $210 million. GlenFed CenFed Combined Total assets $16,218 $2,296 $18,497 (net of $30 million of pre-tax merger-related changes) Total Deposits $9,357 $1,544 $10,901 Total equity $1,1012 $119 $1,114 Banking offices 17518 193 Lending offices 25 2 27 Market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. as of Friday (in millions) $2,008 $208 $2,218 CenFed Branches (in L.A. County): City of Industry La Canada Flintridge Los Angeles Marina del Rey Pasadena (4 offices) Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. SOURCE: Golden State Bancorp CAPTION(S): Chart CHART: GOLDEN MERGER (see text) |
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