Thrifts : Group Boosts Columbia S&L; Stake
A group led by Minneapolis investor Irwin L. Jacobs and Minnesota Twins owner Carl R. Pohlad has increased its ownership in Columbia Savings & Loan to 8.62%, according to a recent filing with the Securities & Exchange Commission.
The investors said the stock was bought for “investment purposes only,” adding they may “attempt to dispose of shares or purchase additional shares in the open market, in privately negotiated transactions or otherwise.”
Columbia Savings is the California thrift that has made a nationwide reputation by investing heavily in “junk bonds,” which are high-yield, high-risk debt securities. Junk bonds account for about 30% of Columbia’s nearly $13 billion in assets.
Columbia Savings is virtually immune from a hostile takeover because the Spiegel family owns about two-thirds of the company’s stock, including common and preferred. The company is run by Thomas Spiegel, its 43-year-old chairman and chief executive.
In a recent interview, Spiegel said Columbia Savings might go private if its stock did not start trading at a higher price. The news sent Columbia’s stock, which had been trading at less than $10 a share, soaring above $11 a share. It closed Wednesday at $11.25.
In a statement Wednesday, Spiegel said: “We are pleased that sophisticated investors such as Mr. Jacobs and Mr. Pohlad have expressed confidence in Columbia by making such a substantial investment.” Pohlad and Jacobs could not be reached for comment.
The additional purchases make Jacobs one of Columbia’s largest shareholders, with 1.17 million shares of common stock, or 6%. Pohlad now owns 383,400 shares, or 1.97%, according to the filing. Three other investors affiliated with Pohlad and Jacobs own the other amounts.
According to the filing, Jacobs has acquired nearly 477,000 shares since early April for $4.76 million. A large number were acquired in late May after Spiegel disclosed that going private is a possibility.
Another major shareholder in Columbia Savings is Cincinnati financier Carl Lindner, who owns debentures convertible into 10.6% of common stock. Columbia Savings has 19.4 million shares outstanding, not including its preferred stock and convertible securities.
