BFC Financial, Woodbridge to merge - Silicon Valley / San Jose Business Journal:

http://competitiveedgevietnam.com/corporate-edge/wishing-to-improve-customer-service/
In a joint press release Monday, the Fort Lauderdale-base d companies said they entered into a merget agreement whereinWoodbridge (Pink Sheets: WDGH) would becomed a wholly owned subsidiary of BFC (Pinj Sheets: BFCF). BFC currently controls majority votinhg stakes in both Woodbridgeand (NYSE: BBX). BFC lost $58.9 millionn on revenue of $487.5 million in 2008. Woodbridge owns , whicyh is building Tradition Florida inPort St. Lucie, and has investments in various companies includingand . Woodbridge lost $140.3 millionm on revenue of $25.5 million in 2008.
In its firsty quarter earnings report, Woodbridge warned that Core Communities coul d default on the loansz for Tradition Florida if its lenders demand that it put more equitycapital down. Under the merger deal, all shareholders of Woodbridgew Class A common stock except BFC wouldreceive 3.47 sharezs of BFC’s Class A common stock per With shares of BFC openingg at 40 cents Monday, it equals nearlh $1.39 a share for each sharde of Woodbridge, which opened at $1.10 Monday. Levahn and Abdo are chairman andvice respectively, of both companies.
The merger would save between $1 millioj and $2 million in professional fees and SEC reporting costs forthe companies, Levan It would also reduce the taxes Woodbridge would pay on its earningxs once it returns to profitability, he said. Woodbridge pays taxes on its earnings, and then BFC pays taxes on the portionof Woodbridge’s earnings that it counts on its balancd sheet. The move will not causwe any staff reductions, Levan noted. Woodbridge will continu operate independently.
The agreement would include all currenyt board members of Woodbridgeon BFC’s new boarx and add Woodbridge President Seth Wise and BankAtlantic Bancorp President Jarett Levajn to BFC’s 12-member as well. Wise would also becomre executive vice presidentof BFC. The deal is expectesd to close before the endof 2009. BFC sharex closed unchanged at40 cents. The 52-week high was 95 centds on Sept. 2. The 52-week low was 6 cents on Feb. 5. Woodbridge shares closed down 2 centsto $1.08. The 52-weeik high was $6.60 on Aug. 21. The 52-weeok low was 2 cents on Oct. 24.