A provision in the merger agreement allows either TierOne or CapitalSource to unilaterally terminate the agreement after February 17, 2008. While TierOne has announced that it does not plan to terminate the transaction at this time pursuant to that provision, CapitalSource’s board has authorized its chairman and CEO to either terminate the merger or negotiate new terms for the transaction.
The transaction remains subject to approval by the Office of Thrift Supervision. TierOne and CapitalSource have been working with officials at the OTS to complete the regulatory agency’s review process.
