The Silicon Valley Bank mobile app logo on a smartphone arranged in Riga, Latvia, March 10, 2023.
Andrey Rudakov | Bloomberg | Getty Images
SVB Financial, parent of Silicon Valley Bank, is in talks to sell itself, sources told CNBC’s David Faber.
Attempts by the bank to raise capital have failed, the sources said, and the bank has hired advisors to explore a potential sale. Large financial institutions are looking at a potential purchase of SVB.
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Shares of the bank fell 60% on Thursday after SVB announced a plan Wednesday evening to raise more than $2 billion in capital. The stock fell another 60% in premarket trading Friday.
Under the terms of a plan released Wednesday, SVB was looking to sell $1.25 billion in common stock and another $500 million of convertible preferred shares.
SVB also announced a deal with investment firm General Atlantic to sell $500 million of common stock, though that agreement was contingent on the closing of the other common stock offering, according to a securities filing.
This is breaking news. Please check back for updates.
Source: https://www.cnbc.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-after-attempts-to-raise-capital-have-failed-sources-say.html