Citadel to Sell 2.9 Million Shares in Fidelity Federal

Citadel Holding Corp., formerly the holding corporation for Fidelity Federal Bank, said it has agreed to sell 2.9 million shares of Class B common stock in Fidelity Federal to various purchasers at $3.50 per share.

The sales, together with Citadel’s previously announced sales, will reduce the company’s ownership in Fidelity to less than 1% of the Glendale-based savings and loan’s outstanding common stock.

Citadel was the holding corporation for Fidelity Federal until last August, when Citadel effectively spun off Fidelity to raise cash for the troubled savings and loan so it could stay afloat.