Citadel Holding called off its preferred stock plan.

The Glendale-based holding company announced that it has canceled a plan for a new issue of preferred stock that was to be part of a defense in its continuing takeover battle with Great Western Financial. Citadel, parent company of Fidelity Federal Savings, said the preferred stock issue is unnecessary because its shareholders will defeat the Great Western tender offer, which expires Friday. Great Western has offered to acquire Citadel by exchanging 1.2 of its shares for each share of Citadel. Citadel had offered its shareholders the right to convert their common shares into more valuable preferred stock.