Paris-based bank offers $2.5 billion for BancWest

By Frank Cho
Advertiser Staff Writer

A French bank plans to buy the parent company of First Hawaiian Bank in a deal valued at about $2.5 billion. The deal would take the company private.

Paris-based BNP Paribas SA, which already is the biggest single shareholder of BancWest Corp. with 45 percent of outstanding stock, plans to buy the 55 percent it doesn't already own for $35 a share in cash. The offer represents a 40 percent premium over BancWest's Friday close of $24.98.

BancWest's board is expected to meet later today to consider the proposal.

"I am pleased that our special committee is recommending that our board approve the proposal," Walter A. Dods Jr., chairman and chief executive of Banc-West, said in a statement. "It seems to be a compelling one that would be in the best interests of all of our public stockholders ... as well as our customers, our community and our employees."

If approved by the board, it would still need shareholder and regulatory approval.

If the offer is accepted, current operations of Bank of the West and First Hawaiian Bank are not expected to be affected. Dods is expected to remain chief executive, and BancWest, formerly First Hawaiian Inc., is expected to remain headquartered in Hawai'i.

BNP currently holds 45 percent of the outstanding common stock of BancWest as a result of the November 1998 merger of First Hawaiian Inc. and the parent company of San Francisco-based Bank of the West.

Under terms of that agreement, BNP is not permitted to submit a business combination proposal without the consent of a majority of BancWest's independent directors. BancWest's independent directors authorized BNP to submit its proposal.