Washington Mutual Rival Claims Edge

H.F. Ahmanson & Co. said today that 19 of the 20 largest Great Western Financial Corp. stockholders are in favor of holding merger discussions with Ahmanson.

Last week, Great Western’s directors rejected a sweetened $6.6 billion bid from Ahmanson, the parent company of Home Savings of America, in favor of a $6.5 billion offer from Seattle-based Washington Mutual.

Ahmanson said there was strong support for its offer, but wouldn’t disclose how many shares are represented by the 19 big investors. Phone calls to Great Western’s offices in Los Angeles this morning went unanswered.

Ahmanson, which is based near Los Angeles in Irwindale, started the bidding war on Feb. 17 with an all-stock offer for Great Western. Great Western turned to Washington Mutual as a friendly partner and both agreed to merge in a stock-swap. Last week’s offer from Ahmanson followed.