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Members of St. James Federal Savings and Loan Association will meet Saturday to vote on whether to convert from a mutual to a stock-owned bank as a prelude to selling itself to Wells Financial. Some believe the vote could set a worrisome precedent.
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Wells Financial in Wells, Minn., has agreed to buy St. James Federal Savings and Loan Association in St. James, Minn.
November 17
Wells Financial in Minnesota has completed its purchase of St. James Federal Savings & Loan Association, in a deal closely watched by members of the mutual bank community.
The $252 million-asset Wells on Thursday
To help finance the deal, Wells raised $2.15 million in a common stock offering; it sold the shares to St. James' depositors and to other members of the community. However, Wells
Douglas Faucette, an attorney at Locke Lord who advises mutuals, said that if the deal closed, it would send a troubling message that mutuals are under so much pressure that they are willing to sell for next to nothing.
Sterne, Agee & Leach was financial adviser to Wells and Jones Walker was its legal counsel. Lindquist & Vennum was legal counsel to St. James.
In a separate announcement last week, Wells said that Dale Stallkamp, a director since 1999,