Citibank Parent to Acquire Cal Fed
Citigroup, parent company of Citibank, has announced plans to acquire Golden State Bancorp in a transaction with an approximate value of $5.8 billion. The sale is expected to close in the fourth quarter of 2002 after all regulatory approvals have been received. San Francisco-based Golden State is the parent company of Cal Fed, the second largest thrift in the U.S. and the eighth largest mortgage servicer through its First Nationwide Mortgage business. It currently has 17 branches in Nevada. Citigroup officials said the transaction will add approximately 1.5 million new customers in California and Nevada. The transaction will significantly expand Citigroup’s branch presence in Nevada, where the combined entity will have 21 branches. It is estimated the merger will make Citibank the third largest retail bank franchise in Nevada in terms of deposits, with approximately $2.4 billion.
Heavenly Ski Resort Changes Hands
Vail Resorts, Inc. has closed on its $99 million acquisition of Heavenly Ski Resort on the south shore of Lake Tahoe. The resort, which straddles the Nevada/California state line, encompasses 4,800 acres, 86 trails and three bowls. Facilities include 29 lifts, four on-mountain lodges, four base facilities and 13 retail outlets. Its gondola carries skiers, snowboarders and sightseers from mid-town to mid-mountain in a 12-minute ride. The new owner plans to invest $40 million over the next five years in improvements. Vail Resorts officials said the acquisition of Heavenly is intended to bring greater diversification to its winter resort business. Vail Resorts owns the Colorado mountain properties of Vail, Beaver Creek, Breckenridge and Keystone, and the Grand Teton Lodge Company in Jackson Hole, Wyo. The company also holds a majority interest in Rockresorts, a luxury resort hotel company with 11 properties across the United States.
Nevada Employment Growth Predicted
Results of a survey of Nevada employers conducted by Manpower Inc. show positive staffing patterns are expected for the third quarter of 2002. While 57 percent of Nevada employers surveyed predicted no change in the size of their permanent workforce between July and September, 28 percent statewide (23 percent in Las Vegas and 33 percent in the Reno area) said they were planning to increase their average number of employees. Only 5 percent said they were decreasing their workforce. “On a national basis,” said the report, “employers expect to increase their hiring activity during the summer months, extending the steady progress toward recovery first seen in the second quarter. Overall, the hiring strength is at its most positive level in five quarters.”
