Polonia Bancorp's biggest outside shareholder on Monday demanded that the thrift company launch a second-step conversion.

PL Capital Group in Chatham, N.J., said the Huntingdon Valley, Pa., company's stock has lacked value since going public four years ago. "The stock has declined 43% since the 2007 IPO," PL Capital said in a press release, and "completing a second-step transaction as soon as practicable is in the best interests of the company and its shareholders."

In a May 6 letter to Polonia's board, PL Capital said a conversion at 65% to 70% of pro forma book value would generate an exchange ratio of about $8.30 to $9.30 a share, compared with the current price of $5.75.

In December, the $299 million-asset company suspended plans to buy back common stock.

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