APPLE VALLEY, Minn. — After six weeks of a merger campaign targeted at Continental Federal Credit Union's membership, Wings Financial FCU announced today that it is withdrawing its merger proposal.
The decision to do so comes two days after NCUA said the $200 payments that the $1.6 billion Wings Financial had been offering to Continental's members was not allowed by the Federal Credit Union Act.
"Because this decision materially changes the terms of our offer, we believe we would be required to re-solicit the many CFCU members who have already indicated their support of the merger," said Wings Financial in a statement. "After careful analysis, we have concluded that effectively starting this campaign over is not practical. As a result we are withdrawing our merger proposal."
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"Despite the end of formal merger efforts, we continue to invite all members of the aviation community to consider joining Wings Financial as individuals," the CU said.
Wings Financial's merger proposal goes down in CU history as the first "unsolicited" attempt by one CU to merge with another. Despite $182 million Continental rejecting the proposal four different times, Wings Financial continued to encourage Continental members to press the board for a special vote and enter into discussions. Wings Financial also refused to stop the campaign even after Continental's attorneys sent a cease and desist letter on April 9.
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