SEC OKs Washington Mutual Bid to Buy GW

Great Western Financial Corp. and Washington Mutual Inc. said the Securities and Exchange Commission approved Washington Mutual’s bid to buy the rival thrift, clearing the way for a shareholder vote June 13. Chatsworth-based Great Western, the second-largest thrift in the U.S., agreed two months ago to be acquired by Seattle-based Washington Mutual in a stock transaction valued at more than $6.6 billion. The combination would create the largest thrift in the U.S. The thrifts said proxy materials are being mailed to their shareholders of record as of Friday. The agreement followed a Feb. 17 hostile bid by Great Western’s Irwindale-based rival, H.F. Ahmanson & Co., which proposed a $6.72-billion stock swap. Great Western has been fighting the hostile bid. Ahmanson asked the Delaware Chancery Court for an injunction to block GW shareholders from voting on the Washington Mutual merger on June 13. Ahmanson has been trying to delay a shareholder vote on Washington Mutual’s proposal to give the GW board a chance to hear from any new board members that are elected at GW’s annual meeting. Ahmanson is seeking to have three directors elected to the board. Based on Tuesday’s prices, Washington Mutual’s bid was valued at $47.08 a share and Ahmanson’s bid at about $48 a share.