BANKER CALLS FOR BUYBACK; GOLDEN STATE PLANS TO OFFSET AQUISITION.Byline: Ben Sullivan Daily News Staff Writer Golden State Bancorp Inc. said Tuesday Tuesday: see week. that it will buy back $160 million worth of its common stock to offset shares it is issuing to fund the purchase of another thrift thrift: see leadwort. . Golden State owns Glendale Federal Bank, and in turn is being bought by First Nationwide Holdings Inc. The buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may is intended to make up for shares Golden State will issue to investors for its purchase of Redlands-based RedFed Bancorp. Under terms of that deal, Golden State will issue $20.75 worth of common stock for every outstanding RedFed share. The exact number of shares will be determined by Golden State's average closing price for the 10 days leading up to the purchase. At Tuesday's closing price of $36.937, Golden State would buy back about 4.3 million shares, or 7.4 percent of its outstanding stock. The purchase is expected to occur in July. Ironically i·ron·ic also i·ron·i·cal adj. 1. Characterized by or constituting irony. 2. Given to the use of irony. See Synonyms at sarcastic. 3. , insiders at Golden State in recent weeks have filed to exercise options on more than 1 million shares, as sale of the company to First Nationwide, parent to California Federal Bank California Federal Bank, often abbreviated to "Cal Fed", was a savings and loan bank in California. It existed from 1926 until 2002, when its parent company Golden State Bancorp was acquired by Citigroup, resulting in the bank being merged into Citibank. , nears completion. The sell-off Sell-Off The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the value of the security. Notes: A sell-off may occur for many reasons. of 1.08 million was led by Golden State Chairman and Chief Executive Stephen Trafton, who exercised an option on 420,000 shares. Trafton said in a Securities and Exchange Commission filing that he expects the sale of his shares to generate $16.5 million, at a projected price of $39.91. A Trafton family partnership also filed to sell an additional 80,000 shares. |
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