Ex-Congressman, 4 Thrift Officials Bid on Lincoln S

Former Congressman John Rousselot and four executives of Lincoln Savings & Loan and its parent company have reached a tentative agreement to buy Lincoln, which is based in Irvine.

Though the purchase price was not disclosed, the tentative agreement is similar to another bidder’s $288.75 million deal that expired at the end of February, said Rousselot, a Republican who represented San Gabriel. Rousselot, who has served from time to time as a consultant to the parent firm, American Continental of Phoenix, said he was hired in July to find a buyer for Lincoln. Eventually, though, the four executives persuaded him to head up their efforts to buy the S&L.;

The four are Jack Atchison, a senior partner at the Big 8 accounting firm of Arthur Young & Co. before joining American Continental in April; Ronald M. Stoll and David I. Thompson, both in-house lawyers for American Continental, and Randall T. Conte, Lincoln’s vice president for loan administration.

None of the four executives could be reached for comment Friday. Rousselot would serve as chairman and Stoll as president, according to their application to buy the S&L.;

The State Department of Savings and Loan released the names of the proposed owners but would not release further details. American Continental would not comment.

Rousselot was a congressman in the early 1960s and again through most of the 1970s. From 1985 until last June, he was president of the National Council of Savings Institutions, a trade group to which Lincoln belongs.

Rousselot termed the deal for Lincoln a “tentative understanding” at this point, though his group filed applications this week for approval with both state and federal regulators.

Similar Deal

Two New York businessmen, brothers Julius and Eddie Trump (no relation to billionaire Donald J. Trump), are helping to finance the deal. The Trumps are putting up $35 million and American Continental is providing another $15 million, Rousselot said. The Trumps and the company will get non-voting preferred stock in return.

Under the deal, American Continental would also receive preferred stock as part of the purchase price and would buy three of the S&L;’s major assets, paying an undisclosed price over 10 years.

The arrangements are similar to the deal reached in December with an investor group headed by longtime S&L; executive Spencer Scott of Glendale. In that deal, which Scott is trying to renegotiate, American Continental would have received $288.75 million of newly issued Lincoln preferred stock and would have bought the same three S&L; assets for $390 million over 10 years.

Rousselot said the sale of the assets under his group’s deal would bring less than $390 million to Lincoln, but he would not divulge the amount.