Golden State Holders Settle Suit Over Merger

Golden State Bancorp Inc. settled a lawsuit with shareholders over the company’s $2.5-billion acquisition by a San Francisco-based thrift owned by financier Ronald Perelman. Perelman’s First Nationwide Holdings Inc. agreed in February 1998 to buy control of Golden State. In a consolidated suit in Delaware Chancery Court, Golden State shareholders contended they weren’t getting a big enough stake in the new company. The merger was completed in September 1998, giving Perelman a 34% stake. After discussions between their lawyers and the company, shareholders agreed to drop their objections in return for additional financial information and an independent financial advisor’s opinion about the transaction’s fairness, which was later sent to share owners, according to court documents. Shareholders’ lawyers said they would ask a judge to approve $1.32 million in fees and expenses. A hearing hasn’t yet been scheduled for a judge to consider approving the settlement. Shares of Golden State, which operates 352 California Federal Bank branches in California and Nevada, rose 25 cents to close at $18.63 on the New York Stock Exchange.