CPB to press merger case
with Wall Street analysts
By Dave Segal CPB Inc. Chief Executive Officer Clint Arnoldus, continuing to keep the pressure on rival CB Bancshares Inc., said he and Chief Financial Officer Neal Kanda are planning to fly to New York and Boston Thursday and Friday to press their case with investors and analysts.
dsegal@starbulletin.comArnoldus, who publicly disclosed on Wednesday Central Pacific Bank's $285 million offer to buy City Bank, said he is determined to see the merger consummated despite the seeming reluctance of CB Bancshares management to cooperate.
"The ball is completely in their court and our next action will be a reaction to what they do," said Arnoldus, who gave CB Bancshares until Friday to respond to the offer. "We have a definite strategy for every reaction and we are going to see this through."
Arnoldus, who wants to close the deal in the fourth quarter, said CB Bancshares has done a disservice to its shareholders by sitting on the offer which was initially made March 17.
"The No. 1 thing on my job description as a CEO, on any CEO's job description, is to look after shareholder interest," he said. "I don't own this institution, and if they had come to us with an offer as strong as this one, there are certain things I would have done immediately."
Among those things, he said, are to have an immediate board meeting, set up a special committee made up of independent directors to look at the offer, hire a financial adviser and hire an attorney."
Arnoldus said that as of the lone meeting the two sides had on April 2, CB Bancshares hadn't taken any of those steps. But he said he doesn't know what has transpired since.
CB Bancshares repeatedly has declined to comment on its actions.
Arnoldus said the relationship between the two banks has been strained since CPB made an offer a year ago to acquire CB Bancshares. That offer was pulled off the table after 30 days.
Arnoldus' March 17 offer included adding three CB Bancshares board members to CPB's nine-member board but said the two sides will now have to negotiate that matter. CPB will comprise 68 percent of the proposed bank while CB Bancshares will occupy 32 percent.
Meanwhile, CPB shareholders will vote today to change CPB's name to Central Pacific Financial Corp. so that the holding company can better reflect the range of services the bank offers and to better align the company's name with its New York Stock Exchange ticker, CPF.
Central Pacific Bank City Bank