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CITADEL HOLDING CORP. COMPLETION OF RIGHTS OFFERING

 Glendale, California, March 29 /PRNewswire/ -- Citadel Holding Corporation (AMEX: CDL) announced the completion today of the offering of 3,297,812 shares of Citadel common stock pursuant to a rights offering to shareholders. The Company issued the new shares at a price of $10.00 a share and realized net proceeds from the offering of approximately $31.5 million. The shareholders exercising basic rights purchased almost all of the shares in the offering and leaving only 18,606 shares to be allocated into the oversubscription pool.
 First Interstate Bank of California Ltd., the subscription agent, will be sending out stock certificates for the new shares to stockholders starting on March 30, 1993. In addition, First Interstate Bank will also refund any monies not used to purchase additional shares from the oversubscription pool.
 Richard M. Greenwood, President and Chief Executive Officer, said: "We are pleased with the success of the rights offering. The net proceeds from the sale of the common stock represents new financing of which approximately $18 million has been contributed to the capital of Fidelity Federal Bank, FSB, and the balance will be retained by Citadel Holding Corporation for working capital purposes."
 The Company noted that all of its major stockholders participated in the offering, with the exception of its largest stockholder, Santa Cruz Resources, Inc. (a subsidiary of Tucson Electric Power Company), which held approximately 21.6 pct. of the approximately 3.3 million shares of common stock of the Company outstanding prior to the offering. Santa Cruz Resources, Inc. informed Citadel that it disposed of its rights rather than exercise them. This has the effect of reducing its holdings to approximately 10.8 pct. of the approximately 6.6 million shares of common stock outstanding after the offering. Santa Cruz Resources, Inc. has also informed the Company that it intends to offer and sell shares of common stock in "broker's transactions", in the manner and amounts and as otherwise permitted by the standstill agreement with the Company, previously announced by the Company.
 In addition, the Company noted that its second largest stockholder, Hecco Ventures I, informed the Company that it exercised its rights and sold all of its shares of Company common stock. Hecco Ventures I owned approximately 9.6 pct. of the outstanding shares prior to the offering.
 Citadel Holding Corporation is the parent company of Fidelity Federal Bank, FSB and is located in Glendale, California.
 -0- 3/29/93
 /CONTACT: Albert J. Clemens, senior VP and Marketing Director, of Fidelity Federal Bank, 818-549-3630/
 (CDL)


CO: Citadel Holding Corp.; Fidelity Federal Bank, FSB ST: California IN: FIN SU: OFR

JL -- LA034 -- 0779 03/29/93 19:10 EST
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Publication:PR Newswire
Date:Mar 29, 1993
Words:443
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