The investor group that announced plans in February to buy control of Washington Bancorp has raised the $70 million it agreed to pay the United Mine Workers of America for the union's 76 percent interest in the bank holding company.
Luther H. Hodges Jr., a member of the investor group and chairman of Washington Bancorp, said yesterday that a new holding company formed to buy Washington Bancorp "has virtually finished satisfying the mine workers."
At Washington Bancorp's annual stockholders meeting yesterday, Hodges also identified, for the first time, several investors in Colson Inc., the New York-based company formed to acquire Washington Bancorp. Several are from the Washington and Baltimore areas.
The group, which includes two institutional investors -- Marine Midland Bank of New York and Mutual of New York, the big insurance company -- has pledged financial backing for Colson.
Colson partners Peter Del Col, Roy B. Simpson and Douglas Hawes of New York, together with Hodges and Washington National Holdings, N.V., a London-based partnership of American, British and Saudi investors, would provide more than a third of the $70 million purchase price. Washington National Holdings would own about 20 percent of the new company but no individual investor would own more than 26 percent of the bank's stock, according to Hodges. Each of the two institutional investors would own less than 5 percent of the stock in Washington Bancorp.
The UMW announced in February that it had agreed to sell its interest in Washington Bancorp to Colson Inc. Washington Bancorp is the holding company for The National Bank of Washington, the District's third-largest bank.
Hodges told Washington Bancorp shareholders yesterday that the investors group had "virtually" satisfied the key provision in the purchase agreement, which calls for the UMW to be paid $70 million for its stock by May 1. The next step, Hodges said, would be to file applications for the necessary regulatory approval.
Even though commitments from the additional investors assure Colson Inc. of meeting the May 1 deadline, Colson intends to increase its ownership in Washington Bancorp to 80 percent to add to the bank's capital base, Hodges explained. Additional shares would be acquired through a tender offer or "other means" not specified yesterday.
Hodges, who will be a director of Colson Inc., said he and other Colson principals will continue to seek investors but "not with the same intensity."
Individual investors who have agreed to participate in the purchase with Colson Inc. include James C. Nelson, president of NBW and its holding company; Robert B. Washington, a Washington lawyer and a director of Washington Bancorp, and Coleman Raphael, chairman of Atlantic Research Corp. and a director of the bank. Other Washington investors are: Gilbert Hahn, lawyer and former chairman of the D.C. City Council; R. Robert Linowes, a partner in the law firm of Linowes and Blocher; James Moshovitis, a real estate developer; Edmund B. Cronin Jr., chairman of Smithy Braedon real estate company; Wallace Holladay, another developer; Theodore Pedas, president of the Circle Theatres; and Lionel Epstein, an investor and businessman.
Other individual investors are Jerry Hoffberger and David Kornblatt, of Baltimore; Fitzgerald Hudson, of Charlotte, N.C.; Duff Kennedy, of Seattle, and Ed Palmer and Sheldon Weinig, of New York.