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SCHEDULE 14A INFORMATION
REVOCATION STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement (Revocation of Consent Statement)
/ / Confidential, for Use of the Commission Only (as permitted by
Rule 14s-6(e)(2))
/ / Definitive Proxy Statement (Revocation of Consent Statement)
/x/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
WASHINGTON MUTUAL, INC.
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/x/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14s-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transactions:
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(5) Total fee paid:
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/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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[Washington Mutual Logo] [Great Western Logo]
WASHINGTON MUTUAL, INC.
MERGER WITH
GREAT WESTERN FINANCIAL CORPORATION
THE EXECUTIVE SUMMARY*
ISS MEETING
MAY 22, 1997
* The following is an executive summary of certain more detailed information
contained in Great Western Financial Corporation's Current Report on Form 8-K
(the "Form 8- K") filed with the Securities and Exchange Commission on May 22,
1997. For further information concerning certain matters described herein see
the Form 8-K.
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The WAMU Transaction Is the Best For GWF Shareholders
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o Creates immediate as well as ongoing value for GWF shareholders
o Creates a premier consumer banking franchise
o Represents the low risk execution alternative for GWF shareholders
o Ahmanson Proposal utilizes questionable assumptions and relies on
imprudent leverage
o Compared to Ahmanson, WAMU has a proven track record of successfully
integrating large acquisitions and delivering shareholder value
o The pro forma combined GWF/WAMU is financially superior to a combined
GWF/Ahmanson
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[Washington Mutual Logo] [Great Western Logo]
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Creates Immediate As Well As Ongoing Value for GWF Shareholders
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o Highly accretive to earnings per share -- 56% projected 1999E accretion
per GWF share
o Earnings growth improved above what GWF shareholders could expect on a
stand-alone basis -- 32% 1997E-1999E forecasted EPS growth
o Capital ratios remain strong as excessive leverage is not required to
produce attractive financial returns -- pro forma tangible common ratio
is projected to be in excess of 5%
o Significant growth in net interest income driven by high projected loan
originations at reasonable margins
o WAMU has a consistent record of regular dividend increases -- 29%
average annual increase since 1991
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[Washington Mutual Logo] [Great Western Logo]
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Creates a Premier Consumer Banking Franchise
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o Will rank in top three in deposit market share in California,
Washington and Oregon and 5th in Florida
o Number one-ranked originator of single family mortgage loans on a
combined basis in California, Washington and Oregon
o WAMU's proven consumer banking capabilities have produced cumulative
average growth rates since 1993 of 7% in consumer loans, 52% in
depositor fee income, 23% in retail checking accounts and 10% in total
households served. These capabilities will be applied to GWF's customer
base
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[Washington Mutual Logo] [Great Western Logo]
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Represents the Low Risk Execution Alternative For GWF Shareholders
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o The WAMU management team has worked together for a significant number
of years and has considerably greater experience integrating large
acquisitions as compared to Ahmanson's management team
o GWF's systems are compatible with WAMU's, not with Ahmanson's
o WAMU will continue to use the GWF name in California, benefiting
customer retention
o WAMU is a friendly transaction in which integration planning has
already begun. Ahmanson is a hostile offer that has antagonized
employees
o A faster solution to the situation is better for shareholders,
employees and customers. WAMU is on track for a closing in late June or
early July
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[Washington Mutual Logo] [Great Western Logo]
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Ahmanson Proposal Utilizes Questionable Assumptions and Relies On Imprudent
Leverage
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o Ahmanson's projected cost savings are $114 million or 34% greater than
WAMU's, a difference that cannot be supported by Ahmanson's proposed
100 additional branch closures
o Ahmanson's earnings are significantly more sensitive to achieving the
stated cost savings target than are WAMU's
o Ahmanson made significant changes in its operating assumptions when it
increased its bid; absent these changes the transaction is dilutive in
1999
o Ahmanson's EPS forecasts depend on massive share repurchases that leave
little room for error -- share repurchases plus dividends are projected
to equal 178% of net income through 1999
o Massive share repurchases will result in Ahmanson continuing to have
one of the lowest consolidated tangible common equity ratios in the
industry -- pro forma ranking of 92 out of 93 thrifts
o Ahmanson's intangibles will total 58% of total equity and the
amortization expense will be in excess of 25% of net income available
to common stock in 1998
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[Washington Mutual Logo] [Great Western Logo]
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Compared To Ahmanson, WAMU Has a Proven Track Record Of Successfully
Integrating Large Acquisitions and Delivering Shareholder Value
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o WAMU has consistently produced greater returns to shareholders -- ten
year total return: 24% vs. 9%
o WAMU has consistently maintained stronger asset quality and reserve
coverage ratios -- NPA-to-assets: 0.93% vs. 2.06; Reserves-to-NPLs:
110% vs. 50%
o WAMU has delivered superior growth in earnings per share and dividends
per share -- annual dividend growth: 29% vs. 0%
o WAMU has a more attractive mix of loans and deposits and is
geographically more diversified -- consumer loans: 10% vs 3%;
transaction + money market + savings accounts: 42% vs. 32%
o WAMU's loan originations have been growing while Ahmanson's have been
declining -- 1994 to 1996 originations: 46% increase vs. 47% decrease
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[Washington Mutual Logo] [Great Western Logo]
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The Pro Forma Combined GWF/WAMU Is Superior To a Combined GWF/Ahmanson
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o GWF shareholders, for each GWF share, will receive greater earnings and
book value in a WAMU transaction than in an Ahmanson transaction
o A combination with WAMU will produce higher growth rates in EPS and
book value than a combination with Ahmanson which should result in
higher valuation multiples
o Return on assets and equity are materially higher in a combination with
WAMU
o Capital, asset quality and reserve coverage ratios are significantly
stronger in a combination with WAMU
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[Washington Mutual Logo] [Great Western Logo]
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The Pro Forma Combined GWF/WAMU Is Superior To a Combined GWF/Ahmanson
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<TABLE>
<CAPTION>
WAMU Ahmanson
Transaction Proposal
----------- --------
<S> <C> <C>
EPS
- - ---
1999E Accretion to GWF Shareholder 56% 39%
1997E-1999E Growth 32% 20%
Capital
- - -------
12/31/97E Tangible Common Equity Ratio 4.91% 3.46%
and projected to and projected
increase to be flat
12/31/97E Tangible Book Value per GWF $19.28 $12.22
Share
Returns
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1999E Return on Assets 1.35% .98%
1999E Return on Common Equity 23.1% 11.7%
Asset Quality
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NPAs/Assets @ 3/31/97 0.94% 1.35%
Reserves/NPLs @ 3/31/97 119% 83%
</TABLE>
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[Washington Mutual Logo] [Great Western Logo]
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GWF Per Share Deal Value -- WAMU & Ahmanson
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[Graph with two lines, one solid line for WAMU Transaction and one dotted line
for Ahmanson Proposal]
[Horizontal line: dates (2/18/97 - 5/19/97); Vertical line: Per GWF Share Deal
Value (0.00 - 60.00)]
<TABLE>
<CAPTION>
WAMU Ahmanson
Date Transaction Proposal
- - ---- ----------- --------
<S> <C> <C>
2/18/97 50.63 47.12
3/03/97 46.69 43.71
3/14/97 45.34 42.26
3/27/97 44.61 44.85
4/10/97 42.98 45.00
4/23/97 42.08 43.95
5/06/97 47.42 48.90
5/19/97 50.29 49.80
</TABLE>
[Graphics: arrow pointing to Ahmanson Proposal line at coordinate (02/18/97,
47.12) with text box: 02/18/97 Ahmanson launches a hostile bid for GWF at an
exchange ratio of 1.05x; arrow pointing to WAMU Transaction line at coordinate
(03/06/97, 47.70) with text box: 03/06/97 WAMU announces merger agreement with
GWF at an exchange ratio of 0.9x; arrow pointing to Ahmanson Proposal line at
coordinate (03/17/97, 47.70) with text box: 03/17/97 Ahmanson increases exchange
ratio to collar (1.2x - 1.1x)]
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[Washington Mutual Logo] [Great Western Logo]
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Exchange Ratio Analysis -- Ahmanson Proposal
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[Graph appears here. Horizontal line: Ahmanson Stock Price ($37.00 - $50.00);
Vertical line: Offer Value Per GWF Share ($44.00 - 56.00); To the right of
vertical line appears a subtitle: 1.20x Exchange Ratio; followed by a vertical
line: $41.67; followed by a subtitle: 1.20 to 1.10x Exchange Ratio $50 Offer;
followed by a vertical line: $45.45; followed by a subtitle: 1.10x Exchange
Ratio; Diagonal line from coordinates (37.00, 44.40) to (41.67, 50.00) becoming
a horizontal line from coordinates (41.67, 50.00) to (45.45, 50.00) becoming a
diagonal line from coordinates (45.45, 50.00) to (50.00, 55.00); graphic: arrow
with text: Current Ahmanson Price pointing to coordinate (40.875, 49.05) with
dashed vertical and horizontal lines from that coordinate to the horizontal and
vertical axes of the graph.]
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[Washington Mutual Logo] [Great Western Logo]
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Comparison of Upside Potential
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<TABLE>
<CAPTION>
WAMU Transaction Ahmanson Proposal
-------------------------------------- -----------------------------------
Change In Exchange Implied Value Exchange Implied Value WAMU
Stock Price Price Ratio Per GWF Share Price Ratio Per GWF Share Superiority
- - ----------- ----- ----- ------------- ----- ----- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Current (a) $55.56 .9x $50.01 $40.88 1.20x $49.05 $0.96
5% Appreciation 58.34 .9 52.51 42.92 1.16 50.00 2.51
10% Appreciation 61.12 .9 55.01 44.96 1.11 50.00 5.01
15% Appreciation 63.90 .9 57.51 47.01 1.10 51.71 5.80
</TABLE>
(a) As of May 20, 1997.
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[Washington Mutual Logo] [Great Western Logo]
