Judge won’t halt
May 28 bank meetingThere is still a possibility
the contentious gathering
could be called off
A Circuit Court judge denied Central Pacific Financial Corp.'s request today to immediately halt a May 28 CB Bancshares Inc. shareholders meeting but left open the possibility the meeting still could be called off prior to that date.
Judge Victoria Marks' ruling means both banks can proceed with sending proxies to shareholders. However, she set a court date for May 22 to hear arguments on whether CPF's request for a preliminary injunction should be invoked.
While Marks' decision keeps the proxy process alive, she rejected CPF's request for a temporary restraining order that would have been good for 10 days and effectively led to the meeting's cancellation. She denied the TRO for three reasons: CPF was unlikely to prevail on the merits because the May 28 date previously was agreed upon by CPF; there's no irreparable injury to CPF because any action taken at the May 28 meeting can be adjourned and also reviewed by the court; and the public interest doesn't favor one side or the other.
CPF filed a lawsuit Wednesday seeking to stop the meeting called by acquisition target CB Bancshares because CPF said it had withdrawn its original offer and made a new one. CB attorney Bert Kobayashi, calling CPF's move a "ruse," said CPF's offer wasn't new but simply a modification.
In another development, attorney James Bickerton, representing CB shareholder Barbara Clarridge in a class-action suit, filed a motion seeking to disqualify Judge Gary Chang from hearing that suit next Friday because Chang chairs two organizations that bank at City Bank. Bickerton is asking for a preliminary injunction halting the May 28 meeting until there has been an adequate amount of time and disclosure about the deal. That hearing is set for Monday.