Great Western Calls Ahmanson Remarks ‘Repugnant’
Amid increasing signs that a bidding war will erupt for Great Western, the savings and loan’s chief executive on Wednesday lashed out at statements made by the management of its hostile suitor, H.F. Ahmanson & Co.
In an e-mail bulletin to employees Wednesday afternoon, Great Western Chief Executive John F. Maher expressed disbelief and outrage at remarks by Ahmanson’s top executive Tuesday that implied Great Western employees will be the sole targets of job cuts in a merger with Ahmanson, the operator of Home Savings of America.
“I find these statements, on a personal level, highly repugnant to my sense of the values that business people must bring to their conduct in the marketplace,” Maher said.
Irwindale-based Ahmanson, which late Monday made an unsolicited offer to purchase rival Great Western, had said its employees would not face “any pain” as a result of the combination of the two banks. Ahmanson has declined to say how many jobs may be eliminated if the merger goes through, but the nation’s biggest thrift plans to close 180 mostly overlapping branches in California. Analysts say that would be likely to cost thousands of jobs.
Chatsworth-based Great Western, the nation’s third-largest thrift, Wednesday declined to comment about the offer, reiterating in the employee bulletin that it would carefully review the deal, valued at about $6.1 billion based on Wednesday’s closing stock price.
Spokesman Ian Campbell also would not confirm or deny reports that Great Western had contacted other potential suitors, including Seattle-based Washington Mutual, which analysts say could make a bid for Great Western.
Ahmanson shares fell $1.75 to $43.125 after climbing $4.375 the day before on news of the offer. Great Western rose 12.5 cents to $45 following a gain of $10.625 the day before. Both trade on the New York Stock Exchange.
“The conclusion of the Street in the share price is that Great Western will be sold, but with Ahmanson’s price going down, there is a question whether they will be a successful buyer,” said Gareth Plank, a financial services analyst at UBS Securities in San Francisco. Plank said he expects Ahmanson would be prepared to raise its bid.
