Newspaper article THE JOURNAL RECORD

Beard Withdraws Bid to Purchase Heartland Thrift

Newspaper article THE JOURNAL RECORD

Beard Withdraws Bid to Purchase Heartland Thrift

Article excerpt

Beard Oil Co. has withdrawn its bid to acquire Heartland Federal Savings & Loan Association, following last week's announcement that bids including promissory notes would be halted.

Herb Mee Jr., president of Oklahoma City-based Beard, said the initial bid for Heartland was submitted Oct. 31 to the Federal Savings and Loan Insurance Corp. and modified Nov. 30.

Ponca City-based Heartland had been Frontier Federal Savings & Loan Association until the FSLIC closed the insolvent Frontier along with 13 other thrifts Aug. 31 as part of the Oklahoma Plan. The closed thrifts were reorganized into five newly-capitalized regional thrifts, including Heartland.

FSLIC had neither formally accepted nor rejected Beard's proposal and had not been negotiating with the company, Mee said.

"It appears highly unlikely that our proposal will be accepted by the banking regulators," Mee said. "Our package included promissory notes."

All mergers and acquisitions have been put on hold unless they did not involve FSLIC promissory notes or other deferred compensation, said David Barr, a spokesman for the FSLIC.

The federal regulator had several deals pending before last week's announcement halting all deals, he said.

"We'll still accept bids if they are all cash, or if they're not all cash," he said, "if they don't involve compensation or notes or if the assistance falls within the FSLIC cash-flow projections.

"If FSLIC has the money to facilitate the deal, it may be considered."

Two consolidated Oklahoma thrifts were sold Dec. 30 as part of the Oklahoma Plan. Both involved some form of assistance, he said.

Of the remaining four consolidated thrifts, including Heartland, "I believe we were in negotiations on three and one we were in the process of rebidding," Barr said. …

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