PBOC Settles Stock Owners’ Lawsuits
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PBOC Holdings Inc., the Los Angeles-based parent of People’s Bank of California, settled lawsuits with stock owners who claimed they wouldn’t get enough for their shares in a $200-million acquisition by FBOP Corp.
FBOP, closely held parent of California National Bank, said in December that it would pay $10 a share for the 58% of PBOC it didn’t already own. Stockholders filed four lawsuits in Delaware Chancery Court contending PBOC directors had a legal duty to get a better price for the shares.
After most public stock owners agreed to the deal, lawyers for dissenters agreed to settle the lawsuits in exchange for more information about the transaction and assurances the board would consider other favorable offers. Oak Park, Ill.-based FBOP completed the buyout in April.
The settlement is subject to a judge’s approval. A hearing is scheduled for Sept. 20.
Shares of PBOC, which reported $252.2 million in fiscal 2000 income, last traded at $10 on April 30.
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