Billionaire banker buys Pacific Capital Bancorp
April 29, 2010
Billionaire banker Gerald Ford has agreed to buy a 91 percent interest in Pacific Capital Bancorp, the parent company of First Bank of San Luis Obispo and Santa Barbara Bank and Trust, for $500 million. [Rueters]
The company plans to sell 225 million shares at 20 cents a share to Ford’s private equity firm Ford Financial Fund. The offer is at a 95 percent discount to the stock’s Wednesday’s close of $4.11.
Shares of Pacific Capital Bancorp soared 35 percent in unusually heavy trading on Nov. 18 after the regions largest banking company announced they were seeking a buyer amid mounting losses that had caused federal regulators to require an agreement that the bancorp increase capital levels.