HGEA opposes
hostile bank merger
The head of the Hawaii Government Employees Association, the state's largest public employees union, said yesterday that the union is opposed to Central Pacific Financial Corp.'s hostile attempt to gain control of CB Bancshares Inc.
Central Pacific Financial, which owns the 24-branch Central Pacific Bank, has been trying to gain control of CB Bancshares since March and is pursuing a hostile takeover aimed directly at shareholders of the parent of 22-branch City Bank.
HGEA is calling for the state to hold a public hearing on the merger and to rule against it.
"The point is this takeover is unnecessary and bad for Hawaii's people, economy and future," said Russell K. Okata, HGEA executive director.
HGEA is concerned that if the takeover occurs, 10 bank branches, including five neighbor island branches, will close, he said.
"Competition is good for consumers like our 42,129 members and their families," Okata said. "If we lose one of Hawaii's major banks, consumers throughout Hawaii will suffer from fewer branches, higher fees for banking services and fewer product choices."
HGEA members are also concerned that the merger will impact the state's economy, he said. "This takeover is often conveyed in terms of money, revenues and market share. These 200 employees put a human face on the term 'hostile takeover' and show the human cost of this unnecessary merger," Okata said.
Earlier this week, CB Bancshares sent letters to legislators asking them to ask the commissioner to deny the CPF application or at least start a public hearing process. One letter was signed by City Bank employees who live in each legislator's district, saying they were worried about their jobs.
Another was from CB Bancshares' top executives, saying 200-plus jobs will be lost if the merger takes place.
