BCSB Bankcorp Inc. in Baltimore has announced the approval by its shareholders and depositors of its plan to convert to a fully public company.
The parent of the $645 million-asset Baltimore County Savings Bank must sell a minimum of 3,004,750 shares to complete its second-step stock offering, it said on Friday.
BCSB last month extended the deadline for depositors to buy shares until Oct. 19. It also took the highly unusual step of giving those who had already signed up a chance to amend or rescind their orders, after warning that it would report a loss of up to $350,000 for its fiscal fourth quarter, which ended Sept. 30. The company cited lower net interest income and a slew of one-time charges.
Mike Shafir, an analyst at Sterne, Agee & Leach Inc., said BCSB might end up having to do a syndicated offering that lets the public buy shares in order to reach the required minimum. But he said, "I do believe the deal will get done."
BCSB completed its first-step stock offering to go partially public in July 1998.
In the second step, it intends to sell the rest of its stock at $10 per share. Since March, the company has three times reduced the minimum number of shares that must be sold, Mr. Shafir said.
