Central Capital Tells Fed It Seeks to Boost Stake in U.S. Trust
WASHINGTON -- Central Capital Corp. filed with the Federal Reserve Board Nov. 1 for permission to increase its stake in U.S. Trust Corp. to 19.99%, according to a Securities and Exchange Commission filing.</br></br>Toronto-based Central Capital, a financial services concern with holdings in Canadian trust companies, which are similar to thrifts, currently holds 959,050 U.S. Trust common shares, or a 10.02% stake.</br></br>In its notice with the Fed, Central Capital said it proposed to acquire as much as an additional 954,000 U.S. Trust common shares, representing about 9.97% of the shares outstanding. If it acquires all the additional shares, Central Capital's U.S. Trust stake would rise to 19.99%, the SEC filing said.</br></br>In a statement, Daniel Davison, chairman of New York-based U.S. Trust, said the banking concern is "vigorously opposed" to Central Capital's application. "We neither need nor wish any increased ownership by this foreign retail financial conglomerate," he said.</br></br>Mr. Davison said Central Capital wouldn't be permitted under U.S. banking regulations to acquire more than 25% of U.S. Trust.