Investor Won’t Hike SC Bancorp Stake
An investment company that owns 9.77% of SC Bancorp said it has scrapped plans to increase its stake in the bank holding company to more than 10%.
Basswood Partners L.P. in Paramus, N.J., said last month that it would request federal permission to boost its investment as part of an effort to sell the Anaheim-based company. Basswood said it was disappointed with the bank’s lackluster performance and was talking to other large shareholders about pursuing a sale.
But in a recent Securities and Exchange Commission filing, Basswood said it was dropping that plan “to remain free to pursue other strategies for maximizing shareholder value” at SC. It said it is communicating with the company and with shareholders about increasing SC’s value, and may seek seats on the company’s board of directors.
SC is the parent of Southern California Bank, which has 14 branches in Los Angeles, Orange and San Diego counties. Company officials declined to comment Friday, but they have previously stated that they oppose a sale.
On Thursday, a group that includes mutual fund giant Franklin Resources Inc. of San Mateo, which holds 5.4% of SC’s stock, said it believed SC should be sold.
SC has been recovering from earlier losses and write-offs for bad loans. In the third quarter, it earned $1.3 million, compared with a loss of $908,000 a year earlier.
On Friday, the company’s stock closed at a 52-week high of $9.875 a share, up 25 cents, on the American Stock Exchange.
