American Savings Ends Offer to Provide Aid to Freedom Savings & Loan
Fraust, Bart, American Banker
American Savings & Loan Association of Miami said Tuesday that its offer to inject capital into Freedom Savings & Loan Association of Tampa has expired.
In June, American Savings offered to provide Freedom with $80 million in capital. The plan included a $10 million investment in Freedom's preferred stock, a $20 million loan, and the $50 million purchase of Freedom loans.
In addition, American disclaimed any obligation to Venezuelan investor Juan Vicente Perez Sandoval to purchase his rights to acquire $20 million in Freedom debentures which have warrants attached for one million shares of Freedom stock.
Mr. Perez Sandoval, who in the last few months has been battling with American for control of Freedom, has filed suit against American, saying American owes him $5 million.
The Venezuelan financier owns 9.9% of Freedom's outstanding shares and has options on one-third of the company's shares.
With $1.9 billion in assets, Freedom is Florida's eighth largest savings and loan association. The $3 billion-asset American is the third biggest savings association in Florida.
American said Tuesday it will continue to explore the possiblity of acquiring Freedom. The acquisition would make it the state's biggest savings and loan. …