Continental FCU Directors to Wings Financial: Hostile Bid Won’t Fly

EL SEGUNDO, Calif. – The Board of Continental FCU voted a third time yesterday against a proposed acquisition by Wings Financial FCU, rejecting the $1.6 billion credit union’s latest hostile bid by a 7-0 vote. The Wings proposal “clearly does not bring any compelling value to our membership,” said Allan Cooper, chairman of the Continental board. “The dilution of our members’ independent voice, the risks associated with this proposal and its questionable value proposition led us to determine that Wings Financial’s proposal is not in our members’ best interests.” Wings Financial, formerly known as Northwest Airlines FCU, submitted its fourth unsolicited merger proposal in the last 18 months on March 9 in a letter to the board of the $176-million credit union. At the same time, the much larger credit union began to solicit members of Continental FCU on behalf of its proposal, offering members a $200 apiece payment, initiating the first hostile takeover bid of a natural person credit union. Wings officials even went so far as to visit Continental FCU’s branches and Continental Airlines terminals at Los Angeles International Airport and Newark International Airport to solicit members for their proposal.