Golden State Bancorp Plans Stock Buyback

Golden State Bancorp, parent company of Glendale Federal Bank, said it plans to buy back $160 million of its common stock as part of its acquisition of RedFed Bancorp Inc., the holding company of Redlands Federal Bank. GlenFed spokesman Ken Preston said no time line has been set for the buyback. Golden State said it expects to repurchase shares equal to the number to be issued in connection with the acquisition. The savings and loan would buy back shares at a price that excludes the value of so-called litigation tracking warrants, or vouchers entitling shareholders to a portion of a possible monetary judgment arising from a breach-of-contract lawsuit the company is pursuing against the federal government. Golden State has received approval from federal regulators for the acquisition of Redlands-based RedFed; RedFed shareholders are scheduled to vote on the deal June 1. Golden State plans to issue $20.75 of its common stock for each RedFed share. Golden State shares rose 19 cents to close at $36.94 on the New York Stock Exchange; RedFed shares gained 6 cents to close at $20.25 on Nasdaq.