Egroup has applied for an S-4 filing dated 11/22/99 on the proposed merger to close at yearend, however the filing clearly states some troubling details. Namely that the Office of Thrift Supervision hasn't approved the merger and with a set date to close by yearend 1999 they would need OTS to move faster than it ever has in the past(which they admit is unlikely). Two thirds of TBFC stockholders must approve the merger. Also if the merger isn't completed, TBFC will pay Egroup $54 Million. Finally the merger may not qualify for a pooling of interest accounting method which would be disaterous. Last year, TBFC was at $150 and then started dropping. I bought in at $100 and even after a 2 for 1 split and the merger announcement the stack continued to plummet to the low 20's, I eventually sold for a tax loss in the low 30's, with a basis of 50. I believe that others may do the same to offset gains in other holdings. I will look to purchase on a steep decline after the 30 day waiting period. I hope I'm right. Any thoughts?
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