3 Firms in Ohio May Enter in Bidding for Home State

Three Ohio companies began reviewing records of the closed Home State Savings Bank on Wednesday before deciding whether to bid against giant Chemical New York to buy the Cincinnati thrift.

Robert I. Lipp, Chemical president, said he was optimistic about acquiring Home State despite the presence of potential competition in the bidding. Lipp said Chemical hoped to reopen Home State as an Ohio subsidiary June 14.

If so, it would mark the first time that Home State’s estimated 66,000 depositors would have access to their money since March 8.

State Savings and Loan Superintendent Robert McAlister, who will determine which buyer lands the thrift, joined Chemical at its briefing and acknowledged that, by virtue of its previous involvement, it had a head start.

The Ohio institutions studying Home State are American Financial of Cincinnati; Western & Southern Life Insurance, through its subsidiary, Eagle Savings & Loan of Cincinnati, and Transohio of Cleveland, McAlister said.

“The simple fact of the matter is that they are starting today. Chemical Bank started a long time ago,” McAlister said.

“Everybody is going to get a fair and equal shot at it, but I am, in fact, going to be very insistent that any other institutions have the financial wherewithal to conclude the transaction, that they have the ability to gain the necessary federal regulatory approvals and that, in fact, they’re able to do it on a time schedule which is consistent with the time schedule that we’re dealing with here,” McAlister said.

“If we’re talking about the Kentucky Derby, I see Chemical Bank by eight lengths in the backstretch,” he said.

Chemical’s offer won’t be revised in the face of offers from other institutions, Lipp said. William M. Duncan was designated as president of what would be known as Chemical Bank Ohio. He is now senior vice president of Chemical Bank, responsible for worldwide consumer lending.

Duncan said that between the time Chemical formally acquires Home State and June 14, it would offer loans to depositors “to tide them over.” “As soon as we know we are going to control the bank and that it will be our bank, we’d be prepared to do that,” Duncan said.

McAlister and Lipp signed the contract for the sale of certain Home State assets and liabilities to Chemical Bank Ohio. That allows regulatory steps to proceed and does not affect a seven-day period ending Tuesday in which others may submit contract offers.