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Dec. 14, 2016, 7:37 p.m. EST

Veritex Holdings loses a quarter of its market cap after merger announcement

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By Jeremy C. Owens


Veritex Holdings Inc. /zigman2/quotes/201489855/composite VBTX +4.65% plunged more than 25% Wednesday afternoon after the Texas-based bank announced that it would merge with another bank in the same state, Sovereign Bancshares Inc. Veritex said it would issue more than 5 million shares to Sovereign and pay $58 million in cash to complete the deal. In a separate announcement, the company said it would sell fresh shares on the open market to fund the cash portion of the payment. Veritex, which ended Wednesday's session with a market capitalization of $245.5 million, plunged from $22.84 a share in late trading to $17.01 after a trading halt of about 30 minutes. The deal is expected to close in the second quarter of 2017.

US : U.S.: Nasdaq
$ 19.34
+0.86 +4.65%
Volume: 679,091
March 24, 2023 4:00p
P/E Ratio
Dividend Yield
Market Cap
$1.05 billion
Rev. per Employee

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