Dissidents Vie for Valley Fed’s Board
The takeover fight for Valley Federal Savings & Loan is being taken directly to the stockholders of the Van Nuys-based thrift.
On April 27, stockholders will elect three of Valley Federal’s 10 directors at the S&L;’s annual meeting. Hecco Ventures, a private investment firm that owns 9.97% of Valley Federal, has nominated its own candidates to oppose Valley Federal’s three nominees.
Hecco is an ally of Citadel Holding, the Glendale-based parent of Fidelity Federal Savings & Loan, which has been pursuing a hostile takeover of Valley Federal since November. Hecco also owns 9.6% of Citadel’s stock, and one of Hecco’s general partners is James J. Cotter, a Los Angeles businessman who also is a Citadel director.
In a filing with the Federal Home Loan Bank Board on Friday, Hecco said its nominees--who include Cotter--would support the sale of Valley Federal. Hecco’s other two nominees are Bruce D. Varner, a San Bernardino lawyer, and Stanley H. Karp, a Los Angeles accountant.
Citadel itself has options and commitments to buy 39.2% of Valley Federal’s stock, including the shares held by Hecco. But Citadel is still awaiting bank board approval to actually buy the stock, and Valley Federal has urged the board to reject Citadel’s request.
