AMERICAN SAVINGS MERGING : WASHINGTON MUTUAL TO STRENGTHEN COASTAL PRESENCE WITH DEAL.Byline: Deborah Adamson Daily News Staff Writer 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., a Seattle financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firm, said Monday it will buy American Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. and its parent company in a stock for stock transaction worth $3.5 billion. Irvine-based American Savings Bank will keep its name, and officials said they expect all branches to remain open, officials said. There are 11 branches in the Valley. ``Unlike many of the other acquisition and mergers you've seen in California lately, this is a transaction of expansion rather than a transaction of consolidation,'' said American Savings spokeswoman Dianne Seeber. ``This will probably open doors for American to grow in the future.'' She said the amount of post-merger downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing - if any - is yet to be determined, but she said no layoffs are anticipated at branches. If the merger clears all regulatory hurdles and is approved by shareholders, it will create the country's 24th largest banking company, based on its combined assets of $42 billion. The new company also will have $23 billion of deposits and 537 offices in seven Western states. Washington Mutual, which owns a network of banks, is the No. 1 residential mortgage originator in Washington and Oregon. American Savings is California's second largest home-mortgage originator. The deal gives Washington Mutual its first presence in California, allowing an immediate foothold in key locations that will solidify its West Coast position. The acquisition is expected to be completed by the end of the year, officials said. James Bradshaw, banking analyst at Pacific Crest Securities in Portland, said American Savings has good locations throughout the state. ``They're in all the right places in California This list of current cities, towns, unincorporated communities, counties, and other recognized places in the U.S. state of California also includes information on the number and names of counties in which the place lies, and its lower and upper ZIP code bounds, if applicable. ,'' he said. ``(American Savings') branch franchise is quite coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. by Washington Mutual.'' There are few franchises of similar size in the state, said Paul H. Irving, a partner at Manatt, Phelps & Phillips in West Los Angeles
California thrifts today are ``fairly priced,'' he said, predicting that there will be a number of other acquisitions by out-of-state companies coming. ``Bob Bass and his group has been rumored to have been wanting to monetize their investment, and this looks like a good opportunity to them,'' Irving said. Robert M. Bass and his investor group control Keystone Holdings Inc. of Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. , the parent company of American Savings. After the acquisition, Keystone will be merged into Washington Mutual. The investor group will get 26 million of the 48 million shares to be issued by Washington Mutual in the merger. With total outstanding shares of 117.5 million, the group's share amounts to a 22 percent ownership in the new company, with Bass holding an 8 percent stake. About 14 million of the new shares will go to the Federal Deposit Insurance Corp., which will sell them after the merger. The rest will be held in escrow pending the outcome of a Keystone lawsuit against the federal government. Washington Mutual also will assume Keystone's $365 million of debt and $80 million in outstanding preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Mario Antoci, American Savings' chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , will retire after the deal closes. Post-merger management changes have not been finalized. Antoci took over American Savings in 1988, when the Bass Group bought it. American Savings Bank was originally part of American Savings and Loan savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. , a failed thrift that led to the largest savings and loan bailout in history. The original thrift was divided into two parts: American Savings Bank controlled the profitable assets and loans while the other unit was liquidated. American Savings Bank has 220 branches in California and Arizona. Washington Mutual has 317 branches in Washington, Oregon, Idaho, Utah and Montana. CAPTION(S): Photo Photo: (Color) American Savings Bank has 11 Valley branches , including Tarzana's. Myung J. Chun/Daily News |
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