(Bloomberg) — SVB Financial Group is in talks to sell itself after attempts to raise capital amid a bank run failed, CNBC reported.
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Large financial institutions are looking at a potential purchase of the company, CNBC said Friday.
SVB — which for months has been adamant that it wouldn’t significantly restructure its balance sheet — stunned investors Wednesday when it said it would issue $2.25 billion of shares and booked a $1.8 billion loss on the sale of a large part of its available-for-sale securities.
The Santa Clara, California-based company took steps this week to shore up capital after being hit by losses on its securities portfolio and a slowdown in funding at the venture capital-backed firms it serves.
The stock, which tumbled 60% on Thursday, plunged as much as 69% early Friday in New York before trading was halted. The company’s bonds posted record declines, igniting a broad selloff in bank shares around the world.
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Source: https://finance.yahoo.com/news/svb-sale-talks-capital-raising-142808035.html