California Federal Delays Stock Offering
California Federal Bank, the nation’s fourth-largest thrift, has delayed its plans for a $700-million initial stock offering because of a review of the plan by regulators, thrift officials said Friday.
The San Francisco-based thrift, 80% owned by financier Ronald Perelman, had planned to complete its stock offering by the end of February.
“We’re proceeding, although I couldn’t tell you” when the initial public offering will be sold, said CalFed Chairman Gerald Ford, who owns a 20% stake in the thrift.
The Office of Thrift Supervision has “some issues” with California Federal’s ownership structure, Ford said. The agency’s main concern is a plan to allow Perelman and Ford, a Texas banking financier, to keep the rights to proceeds of lawsuits filed against the federal government.
In 1994, Perelman and Ford bought San Francisco-based First Nationwide Bank from Ford Motor Co. for about $726 million. In 1997, First Nationwide bought Los Angeles-based California Federal Bank, commonly known as CalFed, and took its name. The thrift’s headquarters were then moved to San Francisco.
Under the IPO plan, CalFed is expected to sell about 15% to 20% of its common stock, raising about $700 million. The offering will be sold by underwriter Goldman, Sachs & Co.
Sale of a minority stake in California Federal is consistent with Perelman’s previous business strategy. In 1992, Perelman took camping and recreation equipment maker Coleman Co. public, and four years later did the same with cosmetics company Revlon Inc.
