Talman Is Said to Reject Buyout Bid from LaSalle
Capital-starved Talman Home Federal Savings and Loan Association has rebuffed LaSalle National Corp.'s bid to purchase it and is reportedly speaking with BankAmerica Corp. about a possible offer, Crain's Chicago Business reported Monday.
Talman declined to comment on the story. But Thomas J. Gobby, a spokesman for the $5.9 billion-asset Chicago thrift, confirmed that it was in discussions with "more than one" potential bidder.
Any winning bid would have to include $300 million in fresh capital that Talman needs to meet regulatory guidelines.
The American Banker reported on June 28 that LaSalle was in discussions to acquire Talman and recapitalize the troubled thrift. Though the Office of Thrift Supervision was expected to give Talman until 1993 to find new sources of capital, Talman said on the 28th that regulators appeared to have shortened the time frame.
Evidence of Another Bidder
Analysts said Talman would not have rebuffed LaSalle without having another bidder in the wings. "They wouldn't be silly enough to turn away the last serious [bidder]," said John Snow, an analyst at Chicago Corp.
Analysts also said First Chicago and Citicorp, two of the largest players in the Chicago market, might be interested in acquiring Talman. Both banking companies declined to comment.
Talman could be a catch for an institution that either wants to enter the Chicago market or is looking to increase its presence. Despite capital problems, the thrift has a strong franchise in Chicago and earned $6.8 million in the first quarter.
It has 45 branches, the bulk of which are in Chicago, and it benefits from a strong consumer base.
"Talman represents the largest piece of the [Chicago] market available," said Mr. Snow. "And Talman itself is doing great."
That could pique the interests of BankAmerica, which has made no secret of its willingness to enter markets outside of the western states, where it dominates. A spokesman for BankAmerica Corp. declined to comment.