City Bank Gets Two Blows from State Government In Two Days -The Bank is Using its Political Clout, Connections, Unusual Channels, to Thwart Hostile Takeover


State Financial Institutions Commissioner Nick Griffin announced late yesterday he will not disapprove of the proposed acquisition of CB Bancshares Inc. by Central Pacific Financial Corporation, saying there is no grounds to do so. Central Pacific is the third-largest bank in Hawaii with 25 branches and deposits of $1.7 billion — City Bank is the fourth-largest state financial institution with deposits of $1.2 billion and 22 bank branches. Central Pacific is attempting to acquire City Bank for cash and stock currently valued at $300 million and should the deal go through, the new Central Pacific Bank would then control $2.9 billion in deposits, or 14 percent of all state deposits.