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IN BRIEF / California

Westcorp Offers to Buy Rest of WFS Financial

July 18, 2002|Reuters and Bloomberg News

Westcorp, a financial services company, said it offered to buy the remaining 16% stake of WFS Financial Inc. that it does not already own for $22.45 a share to improve liquidity and cut costs.

Westcorp and WFS, which are based in Irvine, also reported mixed results for the second quarter. Westcorp's net income fell 28% to $21.7 million, or 55 cents a share, as revenue rose 15% to $300.7 million. WFS reported a 15% rise in net income to $22.5 million, or 55 cents a share, on a 33% increase in revenue to $229.6 million.

The results were reported after the markets closed.

Westcorp said it offered 0.9204 share for each WFS share, which values WFS at a 5% premium over Tuesday's closing price of $21.38.

The deal is subject to approval by the boards of WFS, Westcorp and Westcorp unit Western Financial Bank, which owns the 84% stake in WFS.

Westcorp closed up 1 cent at $24.40 on the Big Board, while WFS rose $2.12 to $23.50 on Nasdaq.

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