It looks like foreign banks are liking what they see and buying American banks.
UnionBanCal shares spike on buyout offer
Tuesday August 12, 2:57 pm ET
UnionBanCal shares surge after Mitsubishi UFG increases buyout offer to $63 per share
NEW YORK (AP) -- Shares of UnionBanCal Corp. hit a new 52-week high Tuesday after Japan's largest bank, Mitsubishi UFG Financial Group, announced plans to buy out the company in a deal valued at $3 billion.
Shares jumped $7.37, or 12.7 percent, to $65.55 in afternoon trading. Shares hit a new high for the year of $65.99 earlier in the session. In the past 12 months, the stock has traded between $34.81 and $61.09.
Mitsubishi UFJ, known as MUFG, offered to buy the remaining shares in UnionBanCal for $63 per share in cash, an 8 percent premium over the stock's Monday closing price of $58.18. MUFG, which already owns a 65.4 percent stake in the San Francisco-based bank, plans to buy the remaining interest through a tender offer beginning Aug. 18.
Subsequently, UnionBanCal, which owns Union Bank of California, advised shareholders to take no action at this time and to await the recommendation of a special board committee, which is reviewing the proposal.
MUFG first made an offer to buy the remaining stake in the company for $58 per share in cash in April. The UnionBanCal board then formed a special committee to review the proposal and later rejected the offer, saying the price did not reflect the fair value of the bank.
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