Bank proxy tries to deter merger

By John Duchemin
Advertiser Staff Writer

Honolulu bank company CB Bancshares has sent a proxy to shareholders saying a hostile merger proposed by rival Central Pacific is financially inadequate.

"Central Pacific's unsolicited proposal is ... not in the best interests of CB Bancshares," the bank said in the proxy statement, which it mailed in advance of a May 28 meeting to vote on the merger offer.

The proxies were mailed Friday, two days after Central Pacific sued CB Bancshares in an attempt to prevent the mailing. Central Pacific claims the meeting is too soon to give shareholders time to consider the $275 million buyout offer.

A judge rejected Central Pacific's motion to prevent the mailing. Central Pacific is seeking a preliminary injunction to ban the meeting. The motion will be heard in state court May 22.

Central Pacific, which claims to have voting control of at least 25 percent of City Bank shares, has asked for a June 26 meeting to consider its offer. Yesterday, City Bank said it rejected that proposed meeting date as "invalid."