Advertisement

Archive for Friday, September 14, 2001

Attack prompts Cap Fed to extend tender offer

September 14, 2001

Advertisement

The parent company of Capitol Federal Savings announced Thursday that this week's terrorist attack on New York had forced the indefinite extension of a stock tender offer.

Capitol Federal Financial originally had intended to accept offers of shares up until 5 p.m. next Tuesday, but now officials are urging shareholders not to mail any information to New York for processing.

The attack on the World Trade Center changed everything.

Both the program's information agent and depositary are located in New York's financial district, making telephone communications and mail deliveries unreliable. The information agent -- Sandler O'Neill & Partners -- had offices in the trade center.

Officials are working on setting up an alternate site for mailing documents and a new phone line for taking questions.

"Our hearts and prayers are with the families of those who suffered a loss in this tragic event," said John Dicus, president of Capitol Federal Financial. "We urge stock holders not to mail any shares at this time."

In August, Cap Fed announced it would buy back up to 8 million shares at a price ranging from $17.50 to $20 per share. Through the close of business Monday, the program's depositary -- American Stock Transfer & Trust Co. -- had received 78,375 shares pursuant to the offer.

While those shares are secure, officials said, the fate of others remains unclear.

"Shares that are in transit are something that we will have to review on a go-forward basis," said Jim Wempe, Cap Fed's vice president for investor relations.

Updates about the status of the tender program and other issues are to be posted at www.capfed.com.

-- Business editor Mark Fagan can be reached at 832-7188.

Commenting has been disabled for this item.