Western Alliance Bancorp denies report of bank exploring sale
12:20 pm Thursday, May 04th, 2023
(Reuters) -Western Alliance Bancorp on Thursday denied a report that said it was exploring a potential sale that sent the lender’s shares down more than 60%.
“Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options,” the lender said.
The bank’s shares were down 42% at $17.22, with trading in the stock halted multiple times.
Earlier in the day, the Financial Times reported that Western Alliance was exploring strategic options including a potential sale of all or part of its business, citing two people briefed on the matter. The bank said the report was false.
Three U.S. regional banks have failed in the last two months, spurring widespread worries about the sector’s stability and dashing regulators’ hopes of a quick recovery.
Regulators had hoped that the sale of First Republic Bank to JPMorgan Chase & Co earlier this week would draw a line under a lingering banking turmoil.
On Wednesday, PacWest Bancorp said it was exploring strategic options. The bank was trying to avoid the fate of other regional lenders by proactively finding a solution that bolsters its finances, a source told Reuters.
PacWest shares tumbled nearly 50% to a record low on Thursday.
(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri and Shounak Dasgupta)
