Washington Mutual Defends Accounting

Washington Mutual defended its method of accounting for its proposed purchase of Great Western Financial Corp. as a “pooling of interests.” H.F. Ahmanson & Co., rival suitor for Great Western, on Friday challenged Washington Mutual’s accounting in a lawsuit seeking to block the acquisition in Delaware Chancery Court. At issue is whether a merger of Washington Mutual and GW is as favorable as it appears. Washington Mutual said accountants for it and GW have advised that the “pooling of interests” method is appropriate. Seattle-based Washington Mutual has agreed to buy Chatsworth-based Great Western for $6.57 billion. Ahmanson, the Irwindale-based parent of Home Savings, has bid $6.79 billion for GW.