Citadel Holding said it has an option...

Citadel Holding said it has an option to acquire another 7%--or 383,000 shares--of Valley Federal Savings & Loan for as much as $20.50 a share. The addition brings to 39% the options and commitments that Citadel has on Valley Federal’s common stock. Citadel, parent firm for Fidelity Federal Savings & Loan in Glendale, is seeking permission from federal regulators to acquire Valley Federal and form a financial institution that would have nearly $7 billion in assets and be concentrated in the San Fernando Valley and Orange County.