PACW - PacWest stock drops on report of takeover talks with Banc of California
2023-07-25 15:12:58 ET
PacWest Bancorp ( NASDAQ: PACW ) is in advanced talks to sell itself to fellow regional lender Banc of California ( NYSE: BANC ) in a deal that could be announced as soon as today, the Wall Street Journal reported Tuesday, citing people familiar with the matter.
The news prompted shares of both companies to swing by double digits in mid-afternoon trading, with PACW plunging 25.9% and BANC jumping 20.8% .
Investors will keep an eye on further developments throughout the day, as both banks are slated to publish quarterly results after the closing bell.
The potential sale comes after PacWest ( PACW ), which took the spotlight during the regional bank crisis earlier this year, disposed of certain assets to shore up its balance sheet. At the same time, the Banc of California ( BANC ) has stayed profitable during the first quarter.
To help fund the deal, private-equity firms Centerbridge and Warburg Pincus are planning to contribute equity, the people told the WSJ .
More on PacWest Bancorp and Banc of California:
For further details see:
PacWest stock drops on report of takeover talks with Banc of California