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

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.

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Veritex Holdings Inc.

US : U.S.: Nasdaq

$ 19.34

+0.86 +4.65%

Volume: 679,091

March 24, 2023 4:00p

P/E Ratio

7.13

Dividend Yield

4.14%

Market Cap

$1.05 billion

Rev. per Employee

$654,296