A merger agreement announced last week by Government Services Savings & Loan Association of Bethesda and a Virginia real estate company has hit a snag and may be terminated.
Other suitors, meanwhile, have indicated strong interest in a merger with Government Services, Maryland's biggest stock savings and loan association.
Government Services says it is still negotiating the merger agreement with Equity Programs Investment Corp. (EPIC) of Falls Church. However, EPIC issued a brief statement last night that cast serious doubt on Government Services' intention to proceed.
EPIC said Government Services had declined to execute a memorandum of agreement calling for a merger of the savings and loan into an affiliate of EPIC.
"We reluctantly must conclude that Government Services' refusal to execute such a memorandum represents a repudiation on their part of our agreement in principle," EPIC's President Tom J. Billman said in a brief prepared statement last night.
"Under these circumstances," Billman continued, "there is no basis for further negotiations looking toward a definitive merger agreement and merger."
Billman could not be reached for comment.
E.A. Baker, chairman of Government Services, reached at home last night, insisted that "we're in negotiations.
"Government Services has not terminated negotiations and will continue to look at every option available to us," Baker said.
Those options will be discussed at a meeting of Government Services' directors today. Baker said that during that meeting, "We will be able to clarify our position with EPIC, as well as other suitors."