Investors approve BancWest buyout
By Frank Cho
Advertiser Staff Writer
Shareholders of BancWest Corp., the parent of First Hawaiian Bank, overwhelmingly approved the company's $2.5 billion purchase by BNP Paribas S.A., France's biggest bank, yesterday and company executives said they expect the deal to clear the final hurdle of government approval in the next few weeks.
With 86 percent of shareholders voting, 99 percent approved the acquisition. Under terms of the deal, two-thirds approval was required.
"We are pleased at such tremendous support from our stockholders for this offer," said Walter Dods, chairman and chief executive officer of BancWest. "I would believe that this is one of the largest votes in favor of a transaction in the history of mergers and acquisitions."
The bank still needs approval from the Federal Reserve Board for the transaction. They expect to receive that within the next couple of weeks and then there is a mandatory 15-day waiting period before the deal can close. After that, shareholders will be paid $35 cash for each share owned. BancWest also will pay a prorated quarterly dividend for the period up until the day before the transaction closes.
Dods said after the purchase there will be "absolutely no changes whatsoever" for customers of First Hawaiian Bank. Dods, 60, will stay on as head of BancWest Corp., which will become a subsidiary of BNP.
BNP is France's largest publicly owned bank and seventh largest in the world.
In May, BNP offered to buy the remaining 55 percent of BancWest it did not already own to expand its international reach farther into U.S. markets. The French bank had owned 45 percent of BancWest since its former subsidiary, Bank of the West, merged with Hawai'i-based First Hawaiian Bank in 1998.
BNP offered shareholders $35 for each BancWest share, which represented a 40 percent premium on BancWest's closing price of $24.98 before the offer.
BancWest's subsidiary banks have 252 branches in seven Western states, Guam and Saipan. After completion of the proposed acquisition, BancWest will continue to be based in Honolulu as a subsidiary of BNP Paribas. Both First Hawaiian and Bank of the West will keep their present names, with current management and operations intact.
Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com.
