KBW said the takeover price of $9.60 a share for PacWest is higher than many estimated, in a positive sign for the sector.
PacWest Bancorp’s stock held on to big gains on Wednesday after it announced it has agreed to be acquired in an all-stock deal by Banc of California Inc. Analysts mostly praised the transaction.
The combination of PacWest Bancorp PACW and Banc of California BANC provides closure to the evolving turnaround at PacWest, KBW analyst Christopher McGratty said. “Relative to expectations during the height of the banking crisis, this is a win for [PacWest] shareholders, especially since Silicon Valley Bank, First Republic and Signature Bank shareholders were left with zero,” McGratty said in a research note. “However, relative to expectations for [PacWest] at the start of the year, the terminal value is much lower than previously expected.”
Meanwhile, Wedbush analyst David Chiaverini reiterated a neutral rating on PacWest and said the deal “represents a fair, but not overwhelmingly compelling” price.
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