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Ahmanson calls it quits
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June 4, 1997: 9:18 a.m. ET
Savings bank refuses to raise bid for Great Western following ruling
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NEW YORK (CNNfn) - H.F. Ahmanson & Co. is throwing in the towel in the battle to create the nation's largest thrift.
Ahmanson said it has withdrawn its proposal to acquire Great Western Financial Corp. and will terminate all pending litigation against the Chatsworth, Calif.-based thrift.
The move comes a day after a judge ruled Great Western shareholders may vote on the proposed $6.7-billion-merger with white knight suitor, Washington Mutual Inc. The ruling left Ahmanson with few options except to raise its bid in hopes to win the contest.
Ahmanson said on Wednesday it is unwilling to increase its offer and predicted it was unlikely to prevail without a higher bid.
Ahmanson (AHM) shares closed 1/2 lower Tuesday at 40-1/4. Washington Mutual (WAMU) stock lost 1-1/4 to 53-3/4. Great Western (GWF) closed down 3/8 at 47-3/8.
Technology issues could face further selling pressure if Integrated Systems Inc. is indicative of the market's overall direction.
The maker of software design tools was trading lower after it reported fiscal first quarter profits will be weaker than anticipated.
After the market closed, Integrated Systems said it expects to report earnings between 1 and 3 cents a share on sales of $24.5 to $25.5 million. Wall Street analysts were expecting profits of 6 cents a share.
The stock (ISCG) was down 3-15/16 at 10 in pre-opening trading on Wednesday.
-- Robert Liu
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