AHMANSON CHALLENGES GW DEAL : SEC REVIEW ASKED FOR COMPETING BID.Byline: Bloomberg News H.F. Ahmanson & Co. said it is asking the Securities and Exchange Commission to review the terms of Washington Mutual “WaMu” redirects here. For the Washington, DC radio station, see WAMU. Washington Mutual (or WaMu; NYSE: WM) is the United States' largest savings and loan association. Inc.'s $6.14 billion agreement to acquire Chatsworth-based Great Western Financial Corp. In a letter to regulators, Irwindale-based Ahmanson claims Washington Mutual cannot use the pooling-of-interest accounting method because it plans to repurchase shares on the open market as well as use treasury shares for the acquisition. Washington Mutual of Seattle has said its agreement depends on using the pooling method, which doesn't create ``goodwill'' expenses that reduce earnings following a transaction. ``As was the case in the proposed First Bank System-First Interstate transaction, it is the SEC, not the company's accountants, that ultimately will decide the outcome of the issue,'' Ahmanson said in a statement. First Bank System Inc. abandoned its proposed takeover of First Interstate Bancorp First Interstate Bancorp was a bank based in the United States that was taken over in 1996 by Wells Fargo. It was headquartered in Los Angeles. The name has continued to be used in the banking world by used after the merger by First Interstate Bank who had been using the last year after the SEC said it could only use the pooling method if it suspended its stock buybacks Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. . It's the latest move by Ahmanson in its hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. bid for Great Western, launched Feb. 17. Great Western instead a accepted a $6.14 billion bid from Washington Mutual. Ahmanson last week raised its hostile offer to $6.18 billion, which Great Western rejected Wednesday. In a separate action at Delaware Chancery Court The Chancery Court of York is an ecclesiastical court for the Province of York of the Church of England. The presiding officer, the Official Principal and Auditor, has been the same person as the Dean of the Arches since the nineteenth century . last week, Ahmanson challenged the two companies' ability to use pooling accounting. Washington Mutual dismissed Ahmanson's move Thursday as a ``desperate attempt'' and its ``allegation The assertion, claim, declaration, or statement of a party to an action, setting out what he or she expects to prove. If the allegations in a plaintiff's complaint are insufficient to establish that the person's legal rights have been violated, the defendant can make a of the day.'' Ahmanson shares fell 1-1/2 to 37-3/8, Washington Mutual fell 15/16 to 49 9/16, while Great Western stock decreased 1-3/8 to 42-5/8. |
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