Comments on: Hostile takeover attempt in Credit Union land http://thebankwatch.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/ Tracking the evolution of financial institutions Mon, 13 Feb 2012 00:48:52 +0000 hourly 1 http://wordpress.com/ By: Jackson Smith, Ph.D. http://thebankwatch.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7652 Tue, 27 Mar 2007 18:27:35 +0000 http://bankwatch.wordpress.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7652 Personally I wonder just how well they have thought out this strategy and think the $200 is bogus.

Will they pay every member of CFCU $200 if the merger is approver, but before the merger is consummated? Would WFCU members really like to see an expenditure of over $5,000,000 for this purpose? Will NCUA allow such an expense and it would have to be an expense and not a dividend as CFCU members are not WFCU members.

If the payment is after the merger and done as a dividend every member of WFCU should get the $200, upping the cost to about $27,000,000.

The merger may occur but I really doubt anyone will ever see the $200.

]]> By: Ron Bensley, Jr. http://thebankwatch.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7529 Fri, 16 Mar 2007 21:18:21 +0000 http://bankwatch.wordpress.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7529 In addition to the unprecedented direct solicitation of Continental’s member-owners,Wings is actually attempting to buy Continental’s accumulated members’ equity dirt cheap. See this data from the 12/31/06 NCUA 5300 Call Report for Continental:

PCA Net Worth Calculation Worksheet, Line 7:
Total Net Worth $29,866,049

Miscellaneous Information, Line 4: Current Members 25,097

Therefore, members equity per capita is $1,190.02. Wings wants to pay $200.

In other words, Continental wants to buy $29,866,049 of members’ equity for $5,019,400.

]]> By: Robbie Wright http://thebankwatch.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7504 Wed, 14 Mar 2007 15:14:44 +0000 http://bankwatch.wordpress.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7504 It’ll be interesting to see how this one pans out. I’m sure many people will be keeping a close eye on this one!

]]> By: WESCONet Web Services» Blog Archive » Hostile Takeover? http://thebankwatch.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7503 Wed, 14 Mar 2007 13:49:13 +0000 http://bankwatch.wordpress.com/2007/03/14/hostile-takeover-attempt-in-credit-union-land/#comment-7503 [...] Check out True Story and The Bankwatch. [...]

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