Hammond’s Tender Offer Is Extended : Stock: Mortgage banking firm says it has received commitments from investors for the $1.7 million needed to buy back the shares.

The Hammond Co. said Tuesday that it will extend its self-tender offer until March 18 and that it now has commitments from investors for the $1.7 million it needs to buy back the shares.

The offer to purchase up to 380,000 shares--30% of the common stock outstanding--at $4 per share was to have expired Tuesday. But as of the close of business Monday only 91,543 shares had been offered for sale, said Hammond Co. founder and chairman Thomas T. Hammond.

Hammond stock closed at $3.50 a share in over-the-counter trading Tuesday, unchanged for the day. The company went public in 1983 at a price of $13 a share.

The Newport Beach mortgage banking firm launched its tender offer Jan. 24 with two goals: to reduce the number of shareholders and to increase major investors’ stake in the company by retiring as many shares as possible.

The company bought back 797,308 shares, or 39% of the stock then outstanding, in 1990.

Hammond said that despite the sluggish response to the offer, he is confident that the first and most important goal--reducing the number of shareholders--will be accomplished.

With fewer than 300 shareholders, the company would be considered closely held. It would not be publicly traded and would be exempt from many of the public reporting requirements that a widely traded firm must observe, including quarterly financial statements and disclosures of profits and losses and executive compensation plans.

Hammond Co. had about 500 shareholders when the tender offer was announced, and Hammond said Tuesday that “we are close to 300” with the shares deposited so far.

Thomas Hammond currently owns 44% of the company and, if all 380,000 shares are purchased and retired, would see his stake jump to 62.2%. All of the company’s officers and directors together own 56.2% of the stock now and would hold a 78% stake.

The tender is to be financed with the proceeds of a private offering of convertible preferred shares, and Hammond said Tuesday that the company has received sufficient commitments to ensure that the funds will be available.