Citadel Holding will pay Great Western $6 million.

The Glendale-based thrift holding company agreed to an out-of-court settlement over an aborted 1985 takeover attempt by Great Western Financial Corp., the nation’s third-largest savings and loan concern. Great Western, which is located in Beverly Hills, agreed to acquire Citadel in May, 1985, in a friendly stock-swap deal that soured when two large minority shareholders of Citadel objected and prevailed in a board room fight against the plan. Citadel said it was making the payment to avoid ongoing litigation costs and to allow management to focus full-time on the business and development of the company.