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The Honolulu Advertiser
Posted on: Tuesday, December 2, 2003

Deadline to comment on merger tomorrow

By Andrew Gomes
Advertiser Staff Writer

Anyone with an opinion on the contested takeover of City Bank by Central Pacific Bank has until tomorrow to submit written testimony to state regulators.

Five copies of written testimony will guarantee the writer up to five minutes to tell how they would be affected by Central Pacific Financial Corp.'s hostile bid to acquire City Bank parent CB Bancshares. The testimony will be heard by state regulators at a hearing from 9:30 a.m. to 4:30 p.m. Dec. 8 at the State Capitol Auditorium.

The Department of Commerce & Consumer Affairs' Division of Financial Institutions will judge whether the proposed merger of City Bank and Central Pacific, the state's fourth and fifth largest banks, will help or hurt the public. Federal regulators are also considering the merger.

Central Pacific offered to buy City Bank in April for about $270 million in a deal that Central Pacific says would create a stronger institution. City Bank rejected the offer, saying it would lead to layoffs and fewer choices for consumers.

City Bank recently mounted a petition drive to convince regulators that they should hear directly from the public on the issue.

A tally of people registered to testify at the Dec. 8 hearing is not expected to be available until after the close of business tomorrow.

The public hearing is open to anyone — including customers, employees and executives of both banks. If time permits, people who have not submitted written statements by the deadline will be allowed to testify. The state also may add additional dates for testimony if needed.

After the hearing, the state will have until Feb. 18 to decide whether to block the merger, which City Bank is fighting in court.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.