Magazine article American Banker

Chicago Thrift in 20% Share Buyback as Investor Firm Seeks Board Seats

Magazine article American Banker

Chicago Thrift in 20% Share Buyback as Investor Firm Seeks Board Seats

Article excerpt

A Chicago thrift under fire from activist investors said it plans to repurchase 20% of its outstanding shares in an effort to boost its weak stock price.

PS Financial Inc., a $122 million-asset thrift company, said it plans by the end of March to buy up to 333,858 shares of its common stock in a "dutch auction." In this type of transaction, investors offer shares for sale with a minimum price attached. Then the company determines how much it must pay to acquire the specified number of shares and pays all stockholders tendering at that price or lower the same price.

PS Financial plans to pay $12 to $14.50 per share. Its shares were trading at $12.50 Friday morning, 8.7% above its $11.50 per share book value.

Kimberly P. Rooney, PS Financial's president and chief executive officer, said the company's decision for a dutch auction was made without regard to a proxy battle begun little more than a week ago by the Chicago investment group Jackson Boulevard Partners LP. …

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