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Schuler sets vote
to approve Calif. deal

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By Russ Lynch
Star-Bulletin

Schuler Homes Inc. has set Jan. 4 as the date for a vote by its shareholders on the proposed acquisition of privately held Western Pacific Housing, the sixth-largest home builder in California.

The vote is largely a formality, however, because Securities & Exchange Commission filings show that Chairman James K. Schuler already has committed his 52 percent of his company in favor of the deal, guaranteeing the needed majority vote.

Announced Sept. 12, the plan calls for Schuler Homes shareholders to swap all their shares for an equal number of shares in a new holding company which would then acquire Western Pacific for 20.1 million shares.

Since the shares used in the exchange would be equivalent to Schuler shares, the deal would be worth $166 million at today's closing price of $8.25.

The plan calls for the companies, which together have total annual revenues of about $1 billion, to continue to operate under their old names after they are merged.

Aside from Schuler shareholder approval, the merger also requires federal antitrust approval.