Great Western Asks Investors To Nix Bid

Great Western Financial Corp. implored its shareholders Wednesday to shun the embrace of crosstown savings-and-loan rival H.F. Ahmanson & Co. while it ponders Ahmanson’s takeover bid.

Ahmanson made the all-stock offer public on Feb. 18. It is currently worth about $6.1 billion - more than 30 percent above Great Western’s pre-offer market value.

Ahmanson is pursuing its hostile bid by asking Great Western shareholders to mail in cards authorizing revisions of the company’s bylaws. The shareholders are dominated by big institutions such as mutual funds who will be tempted to cash in.

In a letter to shareholders, Great Western Chief Executive John F. Maher called Ahmanson’s tactics “a blatant attempt to limit Great Western’s Board’s options and flexibility in evaluating Ahmanson’s proposal and related matters.”

Maher said one of the proposed bylaw changes could preclude Great Western’s board from attracting other bidders.