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The Honolulu Advertiser
Posted on: Wednesday, May 14, 2003

Central Pacific requests meeting

By John Duchemin
Advertiser Staff Writer

Central Pacific Bank yesterday called for a special shareholders meeting on June 26, indicating that it spoke for those owning 27 percent of the outstanding stock of City Bank.

Central Pacific said the purpose of the meeting will be to vote on its proposed acquisition of City Bank. It urged City Bank's management to cancel a May 28 meeting, which also was set for a vote on the takeover bid.

Central Pacific yesterday also responded to City Bank's rejection of its revised hostile takeover bid, saying City Bank executives were unwisely passing up a fair offer.

City Bank spokesman Wayne Miyao said last night that the bank had no immediate comment on Central Pacific's call for a meeting. He said bank managers were reviewing the statement and likely would respond today.

Central Pacific, headed by CEO Clint Arnoldus, wants to buy City Bank for more than $270 million in cash and stock, but City Bank executives have rejected two formal offers, including a slightly sweetened offer presented last week. City Bank has said that the bids not only undervalue their company but could be harmful to the community.

Central Pacific yesterday said City Bank "once again rejects an attractive offer with no explanation or support." Central Pacific said it still has "strong support" from City Bank shareholders and still will try to complete the takeover.

Also yesterday, City Bank said it had filed comments with Hawai'i banking regulators asking them to deny Central Pacific's application for merger of the two banks. If City Bank shareholders eventually approve the takeover bid, regulatory approval still is required.