Yielding to pressure from its largest investor, Royal Financial Inc. of Chicago named a new chairman and said that it would consider selling itself.
Frustrated by Royal's poor earnings and sagging stock price, PL Capital LLC of Naperville, Ill., had said in August that it intended to wage a proxy fight to nominate one of its principals to Royal's board. PL Capital also said that the $132 million-asset Royal should start shopping itself to potential buyers, even though as a recently converted mutual thrift, it could not be sold until next year. (It went public in 2005, and regulators prohibit thrifts from selling themselves until three years after they have converted.)
In a Securities and Exchange Commission filing last week, Royal said that it has elected James A. Fitch Jr., a director, as the chairman of both the holding company and its thrift subsidiary. He will succeed Alan W. Bird, who has been Royal's chairman since 1991 but will remain a director.
Also in the filing, Royal said that it "has decided to examine all options to maximize stockholder value, including, but not limited to, a sale of the company."
On Monday, PL Capital said it was happy with the board changes and would not vote against the current directors at Royal's shareholder meeting this month.
