Aames Stock Surges on Acquisition Rumors

Shares of Aames Financial Corp. rose $1.63 to $23.25 on the New York Stock Exchange after a published report said that two savings and loans were planning separate efforts to acquire the Los Angeles-based sub-prime lender. American Banker, a financial trade publication, said that California Federal Savings Bank of San Francisco and Seattle-based Washington Mutual Inc. might pay as much as $835 million--or $30 a share--for Aames, which specializes in making home loans to borrowers with credit problems. Officials at Aames would not return phone calls for comment. Officials at California Federal and Washington Mutual said it was company policy not to comment on rumors. Industry analysts noted that Aames stock also surged in June when the firm was rumored to be on the verge of being acquired by NationsBank Corp. Those rumors failed to materialize.