Small Texas S&L; Exerts Control at Christiana

A small Texas savings and loan has solidified its control over Christiana Cos. by installing new management and indicating that it plans to steer the drifting real estate development company into new but so far undisclosed directions.

John H. Roberts Jr., chairman of Summit Savings & Loan Assn. of Plainview, Tex., on Friday exercised the power of his institution’s 28% position in Christiana and elected himself chairman and chief executive. John P. Holmes, a New York investment banker who is a close associate of Roberts and controls 1.7% of Christiana shares, was elected to the executive committee.

Roberts replaces longtime Christiana executive Martin Fenton, who remains president and chief operating officer and a director. Fenton and his brother Wendell control about 14.5% of Christiana, making them the second-largest shareholders.

“(Martin) Fenton and Roberts will sit down within the next few weeks and discuss new directions for Christiana,” which will be revealed at a special board meeting scheduled for March 4, a company spokesman said.

“Roberts has said it is best if (Christiana) diversifies, but he hasn’t been terribly forthcoming on what that means,” the spokesman said.

Assets in Roberts’ Texas S&L; grew 81% in the first six months of 1984, to $237.5 million from $131.2 million at year-end 1983. The thrift lost $5 million in 1983 and an additional $4.3 million in the first six months of last year.

Christiana said Monday that its loss in the second fiscal quarter ended last Dec. 31 totaled $526,000, compared to net income of $329,000 in the same period a year earlier. Sales plummeted to $952,000 from $3.6 million in the year-earlier quarter. For the six months, losses totaled $656,000, compared to net income of $1.5 million in the same period a year ago. Sales fell to $3.7 million from $12.1 million.

Uneasy Relationship

In a prepared release, Fenton said the quarterly loss resulted “mostly” from non-cash charges and reduced sales at its Cross Creek master planned community in Atlanta.

Roberts and Fenton were both traveling Monday and could not be reached.

Roberts and Holmes began acquiring Christiana shares in mid-1984. Last October, Roberts’ company acquired a 23% block of Christiana shares from Carma Ltd., a Canadian real estate development firm, with which company officials said Fenton had an uneasy relationship.