Gaylon Lawrence Jr. will file a motion to stay CapStar Financial Holdings Inc.'s lawsuit, pending the Federal Reserve's decision on whether he may own more of the Nashville, Tenn.-based company.
Lawrence, who owns banks in Tennessee, Arkansas and Missouri, earlier disclosed a 10.2% stake in CapStar, based on its 11,346,498 shares outstanding as of Sept. 30, 2017. He has a pending request to own up to 15% of the company. CapStar has sued, however, saying the investor violated banking laws when he failed to disclose plans to increase his holdings or to secure Fed approval before crossing the 10% threshold. The bank is also asking the regulator to force Lawrence to "immediately divest" all "illegally acquired CapStar shares."
Lawrence said he would purchase no additional shares until the Fed issues its opinion. He still owns the same number of shares, but the stake is only 9.99%, based on CapStar's 11,582,026 shares outstanding as of Dec. 31, 2017. His most recent filing also said he may "retain or sell all or a portion of the securities then held ... regardless of the status or result of the Federal Reserve's opinion."
