MONTGOMERY, Ala. --
The board of directors of Colonial BancGroup, Montgomery, Ala., has combined the company's two classes of stock, the A and B class shares, into one class of common stock.
The B class shares, 95% controlled by the family of chairman and chief executive Robert E. Lowder, had previously enjoyed a 20 to 1 advantage over the A shares in voting rights.
Following the reclassification, the new class of common stock would have full voting rights, with one vote per share. Colonial BaneGroup will apply to trade the new shares, which will be 15% owned by the Lowder family, on the New York Stock Exchange. Its A and B shares are currently traded on Nasdaq.
Separately, Mr. Lowder said that Colonial BaneGroup is negotiating to acquire Colonial Mortgage Co.. a subsidiary of Colonial Co., another Lowder family-owned company.
With $5 billion of residential mortgage servicing, Colonial Mortgage is one of the largest privately owned mortgage companies in the country. Mr. Lowder said its acquisition will "contribute significant noninterest income" to Colonial BancGroup's bottom line.